Last week, Japan's rebar prices increased by another Yen 2,000/tonne ($17/t) on week with producers' price hikes, and rebar prices are expected to rise further, according to market sources in Tokyo.
By Monday morning, deals for SD295A 16-25mm rebar in Tokyo were being transacted at Yen 100,000-102,000/t, up Yen 2,000/t on week and Yen 4,000/t on month respectively, and some buyers have already started paying Yen 103,000/t, sources confirmed. This has been the first time for Japanese rebar prices to reach above Yen 100,000/t since October 2008.
A Tokyo-based construction steel trader attributed the price increment mainly to the producers' hikes, but Japan's high scrap prices have also prompted buyers to agree on higher prices on the anticipation of further hikes.
"We expect mini-mills to cut their scrap buying prices because Japan's scrap export prices have been weakening since late February. However, most mills are keeping their prices unchanged, indicating that Japan's steel product prices may rise further," he said.
Many Japanese rebar producers, including Kyoei Steel, the country's largest rebar producer, have added Yen 5,000/t to their product prices for March sales, as reported.
As of Monday morning, mini-mills in the Kanto area around Tokyo were paying Yen 56,000-57,000/t for H2 grade scrap, unchanged since mid-February, while export prices declined by Yen 2,000/t in recent two weeks, sources confirmed.
A distributor in Tokyo shared that inquiries for rebars have been increasing since late February and actual bookings in the month were more than expected.
"And inquiries have become even more active this month as buyers are concerned about the impact of the ongoing tension between Russia and Ukraine - energy-related prices are surging and overseas scrap prices are trending north too. So they (buyers) are now trying to secure some material to avoid potential risks," he said.
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