Kyoei said in a statement, "Last year, the floor area of new start-ups in reinforced concrete construction increased by about 12% compared to the previous year, while currently the demands for development projects and large-scale logistics warehouses are stable. On the other hand, the scrap market, which is the main raw material, is affected by overseas market conditions and seasonal factors. continued to be affected and prices showed an upward trend."
According to market sources, Kyoei has never disclosed the exact list prices, but as of Wednesday morning, SD295A 16-25mm rebar deals in Osaka were trading at around 108,000 Yen/ton ($800/ton), while those in Tokyo were trading at around 121,000 Yen/ton ($896/ton).
Kyoei was expected to raise prices for March after Tokyo Steel Manufacturing, Japan's largest independent mini–factory, announced it was raising prices of rebar and certain H-profiles by 3,000 Yen/ton ($22/ton) for the month of March.
Industry watchers had several explanations for why Kyoei's margin of increase was higher than Tokyo Steel's.
"Rebar prices in the Kansai region (around Osaka) were lower than in Tokyo, but supply was tighter, so Kyoei must be trying to raise market prices to narrow the gap," one said. “And maybe Kyoei is sending a message to other rebar producers to follow the price lead and not Tokyo Steel!”
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