Japan’s Transport Ministry (MLIT) forecast, in October the Japanese construction steel (1929, -6.00, -0.31%), demand is expected to grow, small bar demand is expected to increase 3% year on year to 780,000 tons, the ring was an increase of 1.3%.
According to the Japan Iron and Steel Federation data, in July Japan mini bar delivery to domestic users, 742,000 tons, down 2%, down 7% year on year. However, manufacturers and distributors by the end of July stocks down 8.4% qoq to 602,000 tons, down 4% year on year.
Distributors said that the current demand has not been substantial improvement, scrap prices have an impact on the market. Most buyers expect rebar prices will continue to decline, delays in the procurement or small purchases to meet the needs, and therefore the amount of inquiries very scarce.
Currently, the Tokyo market SD295 rebar 5.6-5.7 ten thousand yen / ton, remained stable since the beginning of the Osaka market price of 5-5.1 ten thousand yen / ton, compared with the beginning of the decline 1,000 yen/ ton.