Japanese Rebar Market Price Continues to Decrease

Concrete reinforcing steel bar market price dropped due to low demand for building constructions around Tokyo and Osaka. The price decreased by 2,000 yen to 52,000 yen per tonne around Tokyo and by 1,000 yen to 53,000 yen around Osaka for direct shipment from makers to users. The market price more than halved from the peak level of 113,000 yen around Tokyo and 115,000 yen around Osaka. The price is expected to decline more in the low demand season of January-March and become below 50,000 yen for the first time since 2004.

Rebar makers’ order receipts increased by about 40% in November from October around Tokyo, though the volume stays at 50% or less level of usual months. Small dealers’ reselling price decreased by 1,000 yen to 58, 000 yen per tonne around Tokyo. Some rebar makers and dealers are offering low price to secure sales volume.

Around Osaka, small dealers’ reselling price lowered by 2,000 yen to 60,000 yen per tonne. Sales competition is intense due to low demand. Large dealers are accepting orders for big-size building projects at cheaper price, even at below 50,000 yen in some cases. Dealers’ sales volume is decreasing by 40% compared with a year earlier.

Some dealers expect the demand increases from civil engineering for January-March while keeps significantly low from building construction.