Japan's rebar producers set prices to touch record high
Some Japanese rebar producers have set their rebar list prices at Yen 120,000/tonne ($955/t) the country’s highest in record to transfer the ever-rising scrap p...
Kanto D-Bar Steel, a Tokyo-based rebar sales venture by mini-mills Godo Steel and Asahi Industries, has added Yen 10,000/t to its base rebar prices at Yen 120,000/t effective from April 14. "Price hikes are in dire need because our production costs have been rising so rapidly," a sales official from the company emphasized.
He explained that the increment included Yen 6,000/t to reflect the rise in scrap prices and the balance for other costs such as alloy and energy. "If scrap prices rise further, additional hikes will have to be decided," he warned.
A Tokyo-based construction steel trader shared that Yen 120,000/t for rebar prices is the highest in Japan's rebar sales record, but most market participants agreed that the rise in production costs among steel producers must be digested.
He said that some rebar producers had made emergency hikes by various degrees. "Apart from those producers who had already made temporary adjustments in their rebar prices, other rebar producers will soon lift their prices to Yen 120,000/t," he predicted.
Kyoei Steel, Japan's largest rebar producer, for example, has added Yen 5,000/t to its rebar prices at Yen 115,000/t since April 13 at its Yamaguchi Works in western Japan, and warned of further adjustments may be announced.
"We expect demand for rebar to rise in the new fiscal year which has just started since this month, and we will be ready to maintain stable product supply and to avoid incurring further losses," a Kyoei official said.
Kyoei last added Yen 7,000/t to its rebar prices at its four works across Japan including Yamaguchi works and tabled Yen 110,000/t for April sales, as reported. "The scrap prices at Yamaguchi area were higher, so the company had to announce an emergency hike for its Yamaguchi works," the construction steel trader explained.
A Tokyo-based distributor said that rebar market prices have been rising on producers' hikes and the prices need to become higher to catch up. "Apparently, most buyers understand the situation that rebar producers are facing, and they will have to agree on higher prices to secure the material, so rebar market prices will continue to rise," he predicted.
As of April 14 morning, deals for SD295A 16-25mm rebars in Tokyo were transacted around Yen 115,000-117,000/t, up Yen 12,000/t on month, sources shared.
Written by Yoko Manabe, yoko.manabe@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
