Rebar Market Price Keeps Weak Trend in Tokyo

Concrete reinforcing steel bar market price is weak at around 54,000 yen per tonne for base sized products directly delivered from makers to users and at around 59,000 yen per tonne at dealers’ inventory sales in Tokyo. Local rebar makers’ order receipts increased to 113,000 tonnes in November from 103,000 tonnes in October. However, rebar makers and dealers don’t feel the demand actually rebounded. They keep cautious output and sales.

Japanese rebar makers’ production and shipment are around 200,000 tonnes per month, lower by 30% compared with the usual level. Inventory to shipment ratio is rising. Local rebar makers continue output adjustment as much as actual demand volume. The makers will suspend their plants for average 10 days, at maximum 21 days, during the year-changing period. Rebar makers aim to sustain the market price by improvement of supply and demand balance.

Market price is in weak trend. Some makers and dealers are trying to gain orders even at cheap prices. Rebar makers are unwilling to approve price cut any more when ferrous scrap market price stays at around 25,000 yen per tonne. Rebar makers aim to sustain 50,000 yen per tonne at direct delivery to users.