Posted on 16 Jan 2026
Kyoei Steel, Japan's largest rebar producer, will continue to maintain its prices for rebars at all its four works nationwide for this month, the company announced on January 14. However, effective the same day, its selling price will be Yen 100,000/tonne ($633/t), it said.
"In the severe demand environment of the domestic steel market, the profit environment for manufacturers has deteriorated due to rising electricity costs, labour costs, and others, and fixed costs are increasing due to production adjustments in line with demand," Osaka-based Kyoei said in its price policy statement. "Since it is difficult to secure sufficient profits at the current market level, the selling price is Yen 100,000/t," it declared.
Industry watchers in Tokyo suggested Kyoei's statement was more an expression of purpose than a definitive price guide. "In its monthly policy statements, Kyoei never announces a price – just any increases up or down – so this is meant to show it's serious about achieving the price it wants," one explained. Kyoei's brief statement made no mention of the diameter of the rebar the price referred to or charges for any size extras, for example.
Most likely, Kyoei's primary target were construction steel distributors and building contractors in Osaka, its home market. Industry daily Tekko Shimbun currently puts the price of 16-25 mm diameter SD295 rebars in the Tokyo market at Yen 104,000-Yen 106,000/t, whereas the price in Osaka – where new construction projects are fewer and steel demand weaker than in Tokyo – is far lower at Yen 92,000-Yen 93,000/t.
"Yet ferrous scrap prices in both markets are about the same," the Tokyo source explained, adding that the mini-mill needs to get its product prices higher because costs for labour, energy, transportation and other inputs will rise from April, the start of Japan's new fiscal year.
With its announcement on Wednesday, Kyoei could also have intended to get its message out in the market ahead of the price leader, Tokyo Steel Manufacturing. Tokyo Steel will likely announce its list prices for February sales next Monday, Mysteel Global notes.
Source:Mysteel Global
