Rebar Price Drops in Tokyo

Concrete reinforcing steel bar market price around Tokyo is weak at 62,000 yen per tonne at dealers’ inventory sales and at 56,000 yen at direct shipment from makers to the users. Local rebar makers’ order receipts decreased to near 100,000 tonnes in October. The demand grows stagnant for building materials. Dealers are offering cheap reselling prices. The market price is expected to keep downward trend.

Reinforcement placing price is also lowering. A reinforcement placing worker source said some workers are forced to accept orders at cheaper price. General contractors are strongly requiring price cut to rebar dealers. Some large dealers reduced the reselling price to 50,000-55,000 yen per tonne at direct shipment from makers.

Dealers’ sales competition is becoming severer. One dealer accepted a large building construction project while other small-middle size dealer cannot catch up with the price competition. Dealers’ sales competition is expected to become even severer for January-March of non-demand season.