Posted on 25 Aug 2025
Kyoei Steel, Japan's largest rebar producer, is keeping its domestic sales prices for rebars unchanged at all its works for September, the Osaka-based mill announced on August 21, saying that market conditions for bars have been soft nationwide and that prices in some regions are still at "excessive" lows.
"Domestic demand for steel building materials continues to lack excitement due to chronic labour shortages, delays in construction progress due to tightening working-hour regulations, and revisions of project plans due to rising material prices," Kyoei said in its policy statement.
The mini-mill had tried raising its prices in January by Yen 3,000/tonne ($20/t) and had lifted them by another Yen 2,000/t for April sales, but this tactic failed to jolt the market, as Mysteel Global reported.
Industry daily, Tekko Shimbun, reported last Friday that rebar prices in Tokyo, Japan's largest rebar market, have fallen by Yen 2,000/t since late July. "General contractors have few projects on hand, and competition for orders among dealers is fierce, leaving electric furnace manufacturers no choice but to respond to the low prices," it observed.
Prices for base size (SD295, 16-25mm) rebars in Tokyo have been steadily declining for months and are now in the range of Yen 104,000-Yen 106,000/t, which compares with Yen 108,000-Yen 110,000/t in June.
Market leader Tokyo Steel Manufacturing had announced on August 18 that it was keeping its sales prices unchanged for September, as reported, so Kyoei Steel is merely following.
"However, along with the high costs of electricity, fuel, and labour, the business environment continues to put pressure on manufacturers' profits, and there is an urgent need to rebuild the market," Kyoei said in its statement. "In order to maintain a stable production and supply system, there is no room for further price reductions, and we will consider raising prices during the current fiscal year, depending on the situation," it warned.
The most recent data from Japan's mini-mill grouping, the Non-integrated Steel Producers' Association, shows that in June, shipments of small bars for use as rebars to the domestic market totalled only 452,000 tonnes, down 15% from the same month a year ago and marking the 13th consecutive monthly on-year decrease. Similarly, Japan Iron and Steel Federation calculations put Japan's total rebar production in June at 494,000 tonnes, down 11% from June last year for the 15th straight monthly on-year fall.
Source:Mysteel Global
