Weak Rebar Price in Tokyo

Reinforcing steel bar market price is weak at 65,000 yen per tonne for direct shipment transaction from makers to users around Tokyo. Users’ order volume keeps low. Users are urging the price cut to dealers. Dealers are gradually decreasing the reselling price when rebar makers around Tokyo passed the price announcement in April. The market price is expected to continue downward.

Makers’ order receipt increased by 12.5% to 180,000 tonnes in March from February but seems decreasing in April. The demand is unlikely to recover in a short term.

General contractors keep holding off rebar purchase with an anticipation the market price could down more. A general contractor source said they would wait for the timing when the market price lowers to around 60,000 yen per tonne.

Local electric furnace steel makers are purchasing ferrous scrap at around 18,000 yen per tonne. The price maintains low level. Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, currently offers 49,000 yen per tonne for rebar.