Rebar Market Price Enters Bottom Level in Tokyo

Market price of concrete reinforcing steel bar decreased by 1,000-2,000 yen to 62,000-63,000 yen per tonne around Tokyo. Rebar makers show a stance to sustain the selling price at above 60,000 yen when their ferrous scrap purchasing price is increasing. Rebar makers and dealers suppose the market price entered the bottom level. The price is expected to stay at the present level for a while.

Local rebar makers’ order receipts in May seems to keep the level as much as 180,000 tonnes in March or 200,000 tonnes in April around Tokyo. Makers’ order backlog decrease has slowed down since April with new order receipts.

General contractors are recently increasing order volumes when rebar market price continues to decline. General contractors had minimized rebar procurement volume, for example, dividing orders for one building construction. For middle- and small-size buildings, general contractors restarted to secure rebars at once for each project.

Rebar demand is expected to keep the low level even though recovering slightly in and after summer. The supply and demand balance is barely sustained by makers’ continuous output reductions by more than 50% year-on-year.

Rebar market price is reaching the bottom but unlikely to rebound immediately. General contractors will continue to request price cut against suppliers. The market price would stay at the present level for a while.