Weak Rebar Price around Tokyo

Reinforcing steel bar market price is weak at 62,000-63,000 yen per tonne for base size with 19 millimeter diameter. General contractors are requiring price cut to below 60,000 yen. General contractors’ orders are few. The market price is expected to slightly decrease.

Rebar makers’ order receipts seem to keep flat at around 200,000 tonnes in May from April around Tokyo. Some makers forecasted the award volume could increase in May but, in fact, the orders didn’t increase due to slow demand and anticipation of a fall of the market price.

General contractors are holding off rebar procurement and requesting the price cut to dealers. Some dealers contracted at below 60,000 yen per tonne with general contractors.

Rebar makers are purchasing ferrous scrap at around 23,000 yen per tonne. Rebar makers will maintain the selling price at 60,000 yen. However, bargaining power of genera l contractors is stronger than dealers’ under slow demand.