Japanese Rebar Demand Decreases by 20% in July-September

Japanese concrete reinforcing steel bar demand is likely to decrease to about 2.1 million tonnes by over 20% in July-September from same period of last year due to sluggish sales of condominium building. Meanwhile, rebar steel export is expected to triple to 150,000-200,000 tonnes in July-September from same period of last year when the demand keeps good condition in Asia or USA. Japanese rebar makers will increase export of rebar and billet against decreased supply for domestic market, which is expected to reduce rebar output to 2.4 million tonnes by 10% in July-September from same period of 2007. Contract ratio of condominium building decreased to the first half of 60% around Tokyo or Osaka. Japanese condominium building shipment is decreasing by 20-30% in this year compared with last year, which is expected to more decrease in this summer.Japanese rebar export keeps 50,000 tonnes per month with higher level. Order from South Korea or USA is firm. The export is likely to increase in August-September when the shipment to domestic market decreases by a large margin. Japanese billet export is firm, too. Billet export price is high at over FOB 110,000 yen per tonne.