Tel :
Tel :
On August 21, Osaka-based Kyoei Steel, Japan's largest rebar producer, announced that its domestic rebar sales prices at all its mills nationwide would remain unchanged in September. RAIN RI/F460 steel The company explained that the domestic bar market remained weak, with prices in some regions remaining "excessively low."
Kyoei Steel stated in a statement: "Domestic demand for construction steel continues to be sluggish due to a chronic labor shortage, construction delays caused by working-hour regulations, and adjustments to project plans due to rising raw material prices."
The company attempted to raise prices by ¥3,000 (approximately $20) per ton in January and an additional ¥2,000 in April, RAIN RI/F460 steel but as Mysteel Global reported, this strategy failed to effectively stimulate market demand.
Tekko Shimbun, a Japanese steel industry daily, reported last Friday that rebar prices in Tokyo, Japan's largest rebar market, have fallen by ¥2,000 per ton since late July. "With a shortage of projects for general contractors and fierce competition among distributors, electric furnace steel mills are forced to adapt to the low prices," the publication commented.
Prices for benchmark-grade rebar (SD295, 16-25mm) in Tokyo have been declining for several consecutive months, currently ranging from ¥104,000 to ¥106,000 per ton, compared to ¥108,000 to ¥110,000 per ton in June of this year.
Market leader Tokyo Steel announced on August 18th that its September prices would remain unchanged, so Kyoei's move represents a tracking price adjustment.
Kyoei added in a statement, "Due to high electricity, fuel, and labor costs, the operating environment continues to squeeze steel mill profits, necessitating an urgent need to restore market order. RAIN RI/F460 steel To maintain a stable production and supply system, there is no room for price reductions, and the company will consider further price increases within the current fiscal year, depending on the circumstances."
According to the latest data from the Japan Non-integrated Steel Producers' Association, shipments of small bars for rebar to the domestic market in June were only 452,000 tons, a year-on-year decrease of 15%, marking the 13th consecutive month of year-on-year decline. Meanwhile, statistics from the Japan Iron and Steel Federation (JISF) show that total rebar production in Japan in June was 494,000 tons, an 11% year-on-year decrease, marking the 15th consecutive month of year-on-year decline.
