Rebar Market Price Drops by 2,000 y/t around Tokyo

Concrete reinforcing steel bar market price decreased for the first time in 3 months around Tokyo. The market price lowered by 2,000 yen to 57,000 yen per tonne from last week for direct shipment transaction from makers to users. Tokyo Steel Manufacturing announced to reduce its rebar selling price widely for November contracts. Wholesalers decreased the reselling price due to low demand and shipment. The market price is likely to maintain downward with few new orders within this year.

Dealers’ reselling price lowered by 3,000 yen to 63,000 yen per tonne from last week. Some dealers more decreased the price. A large dealer source said they keep cautious sales stances due to high credit risk.

The demand is significantly shrinking. Rebar makers’ order receipts increased to 310,000 tonnes in July while decreased to 290,000 tonnes in August, 170,000 tonnes in September and is expected at 120,000-150,000 tonnes in October. General contractors almost purchased rebar to use within this year and keeps spot purchasing.