Weak Rebar Price in Tokyo

Reinforcing steel bar market price is weak at 58,000-59,000 yen per tonne for direct shipment transaction from makers to users around Tokyo. Rebar makers raised the selling price due to rising ferrous scrap cost. However, the market price is likely to keep slightly downward since the demand stays low mainly from condominium constructions and the users strongly require rebar price cut.

General contractors are hurrying to secure cheap rebar after rebar makers’ price hike. Rebar makers’ order receipts are expected to reach 230,000-250,000 tonnes in July from June of 190,000 tonnes around Tokyo. However, the volume expansion indicates that the users hurried to secure cheap rebar within July.

Japanese rebar output decreased by 25% in May from a year earlier while the output around Tokyo decreased by 20%. The output for June-July slightly increased for stocks before makers’ seasonal refinement in summer. Consequently the output is expected to decrease in August. On the other hand, rebar makers’ inventory is increasing. The supply and demand seem to maintain loose for a while.

Construction dimension of condominiums decreased by 67.8% to 246,244 square meters in May from a year earlier around Tokyo. Building construction plans might increase in autumn but building developers have cash-flow problems. General contractors are resisting rebar makers’ price hike due to low building demand.