Rebar Price Drops by 2,000 yen/t in Osaka

Concrete reinforcing steel bar market price decreased by around 2,000 yen to 113,000 yen per tonne for base size for direct shipment from makers to users around Osaka in a week. The price kept flat from July but the price finally dropped when the users sought lower price. The price could decrease when the transaction increases toward the demand season. The price hit 115,000 yen per tonne in July, which was 43,000 yen higher than the beginning of the year under surging ferrous scrap market. However, the rebar market interests expected lower price and the users limited the purchase only to immediate use after scrap price drop since July. The rebar dealers were in pressure by the buyers for lower price and some dealers offer lower price at as low as less than 110,000 yen while other dealers expect the price keeps historical high level in short term due to thin transaction. Some rebar market interests expect the buyers would increase the purchase in and after mid-October after they reduced the purchase volume. However, the higher transaction could reduce the price under pressure for lower price. A dealer source said they are forced to reduce the reselling price under buyers market and the market could decrease to around 100,000 yen per tonne level depending on the makers’ pricing.