Kyoei Steel holds rebar prices for May

The Osaka-based mini-mill had held prices for current month sales after lifting them in February and March by a total of Yen 6,000/tonne ($389/t) in response to soaring energy prices, labour costs and transportation charges, as Mysteel Global reported.

 

"Currently, both inquiries and cargo movements (of rebars) have been sluggish due to factors such as the prolongation of construction periods due to labour shortages and soaring prices of various materials," Kyoei said in its April 23 price policy statement. "On the other hand, since the start of construction of large-scale properties such as urban redevelopment projects and logistics warehouses has been relatively strong, overall demand is expected to remain resilient in the future," it said.

 

Kyoei's decision to hold its prices is interesting because though rival steelmakers such as Tokyo Steel Manufacturing have also kept their prices stable for May, over the past few weeks market conditions have been strengthening, especially in Tokyo, Japan's largest rebar market. 

 

Kyoei never reveals its list prices but this week, deals involving SD295A 16-25mm rebars in Tokyo are being negotiated at Yen 117,000-Yen 119,000/t, higher by Yen 2,000/t from earlier this month, according to market sources. Those in Osaka, Kyoei's home market, are still at Yen 104,000-Yen 105,000/t, unchanged for several months.

 

"In response to the strong sales push of mini-mills, prices of rebars from dealers have risen by Yen 2,000/t since the end of March," one industry source noted. "On the other hand, there has been no increase in the prices (of bars) for direct shipping to large customers due to the fierce resistance of general contractors," the source said.

 

Kyoei's production base for supplying rebars to the Tokyo market has been its consolidated subsidiary Kanto Steel, based in Tsuchiura in Ibaraki prefecture, north of Tokyo which has a crude steel capacity of about 250,000 tonnes/year. Kyoei absorbed the company on April 1 and now operates it as Kyoei Steel Kanto Division, Mysteel Global notes.

 

Written by Russ McCulloch, russ.mcculloch@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com