Kyoei Steel raising rebar prices for November by $32/t

"The domestic steel market continues to be sluggish both in terms of new inquiries and shipment volumes, and product prices have still not reached appropriate levels," the mini-mill said in a statement. "On the other hand, the business environment surrounding (steel) manufacturers has become even tougher due to rising energy costs including electricity, logistics expenses, labor costs, and increased fixed costs from production cuts in response to demand," it observed.

The Osaka-based mill has insisted for months that it is "strictly enforcing" a minimum price of Yen 115,000/t for 'base size' rebars, as Mysteel Global has reported, but its apparent determination to support prices has had little effect.

Kyoei never reveals its list prices, but industry daily, Tekko Shimbun, still puts the price for 16-25 mm diameter SD295 rebar in Osaka at Yen 103~105,000/t while those in Tokyo are still Yen 115~117,000/t, unchanged for three months.

On October 19, leading mini-mill Tokyo Steel Manufacturing announced it was adding Yen 3,000/t to all its product list prices for November sales which took its price for base size 13-25 mm diameter rebars to Yen 96,000/t, as reported.

Addressing a meeting of the Japan Small Bar Manufacturers and Distributors Association last Wednesday, Kyoei Steel chairman, Hideichiro Takashima, was philosophic.

"Although natural disasters are frequent and have a major impact on the economy, small bars are an essential basic material for infrastructure development," he said. "They play an important role in supporting early recovery and reconstruction from disasters, renewal of aging social infrastructure, and strengthening national resilience. As an industry, we want to strive to maintain stable supply to fulfil our social mission," he added.

Preliminary data on steel production released by the Japan Iron & Steel Federation on October 22 showed that during September Japan's nationwide production of small bars (almost all were rebars) totaled 492,100 tonnes, down 7% from September last year and marking the fourth consecutive monthly on-year decrease.

This also took January-September output to 4.5 million tonnes, down 6.2% from the same period last year.

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

Edited by Alyssa Ren, rentingting@mysteel.com

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