Rebar Market Price Continues Lowering, Tokyo

Market price of concrete reinforcing steel bar represents downward at 54,000 yen per tonne for base sized products directly delivered from makers to users and 59,000 yen per tonne at dealers’ inventory sales around Tokyo. There are few orders and contracts. General contractors strongly request price cut to rebar suppliers. Some of local rebar makers and dealers offer cheap selling price to secure order volume.

Local rebar production and shipment stays at around 230,000 tonnes per month since autumn 2008. A local electric furnace steel maker said the volume might shrink more in the second half of fiscal 2009 (October 2009-March 2010). Rebar production and shipment seasonally decrease for January-March. In this fiscal year, the demand drop may become even severer.

Concrete reinforcing workers’ order receiving price is also lowering to 34,000-38,000 yen per tonne. The bottom price seems below 30,000 yen under severe competitions. Many construction projects are suspended or postponed.

There is no positive factor for rebar market price.