On June 25, SteelOrbis reported that Osaka-based Kyoei Steel, Japan’s largest rebar producer, would keep its rebar prices stable into July. At the time, rebar prices were reportedly at JPY 67,500-68,500/mt ($616-625/mt) ex-mill Osaka region while Tokyo region and the eastern part of the country rebar prices were higher by JPY 2,000-5,000/mt ($18-46/mt).
SteelOrbis has been informed that Kyoei Steel will reportedly increase list prices for September in an effort to increase spot market rebar prices that have slipped in the past month to JPY 66,500-67,500/mt ($602-611/mt), down JPY 1,000/mt or $14/mt compared to June prices. The spread between Osaka prices and Tokyo prices have reportedly increased to JPY 5,000-7,000/mt ($45-63/mt) due to larger infrastructure investment projects in the capital city.
The intended increase from rebar list prices, which are above the spot price, is an additional JPY 2,000/mt ($18/mt). The increase is attributed to higher input and operational costs, and is in line with other Japanese companies such as NSSMC that are reportedly raising heavy plate prices by JPY 5,000/mt ($45/mt) in September. However, Tokyo Steel has announced stable pricing for its flat steel products into September. The last price increase for Kyoei was in April, while NMCC and Tokyo Steel last increased list prices in February.
USD = JPY 109.54 (Jun 25)
USD = JPY 110.54 (Aug 22)