Rebar Market Price Lowers by 3,000 y/t, Tokyo

The market price of concrete reinforcing steel bar lowered by 2,000-3,000 yen to 70,000-72,000 yen per tonne around Tokyo, which reached the level as low as January 2008. Major rebar makers currently accept orders at below 70,000 yen per tonne. Dealers’ inventory price is decreasing by 3,000 yen to 79,000 yen.

Dealers’ award volume is decreasing after the price cut by Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker for March orders. Dealers’ shipment keeps slow. The market price is weak when electric furnaces’ ferrous scrap purchasing price is decreasing to 19,000 yen per tonne.

Some makers in other regions accept rebar orders at cheaper prices than Tokyo. General contractors are holding off rebar procurement with an expectation the market price continue declining. General contractors keep spot and small-lot purchase.

The demand is expected not to rebound largely when many building developers postpone condominium construction projects to June from originally scheduled April. Condominium sales are sluggish.