Kyoei Steel, Japan's largest rebar producer, has decided to maintain its domestic rebar prices for May sales, despite recent market conditions strengthening, especially in the Tokyo market. 

The company stated that both inquiries and cargo movements of rebars have been sluggish due to factors such as the prolongation of construction periods caused by labor shortages and soaring prices of various materials. 

However, Kyoei noted that the start of construction of large-scale properties such as urban redevelopment projects and logistics warehouses has been relatively strong, and overall demand is expected to remain resilient in the future.

Kyoei's decision to hold its prices is interesting because rival steelmakers such as Tokyo Steel Manufacturing have also kept their prices stable for May. However, over the past few weeks, market conditions have been strengthening, especially in Tokyo, Japan's largest rebar market. 

While deals involving SD295A 16-25mm rebars in Tokyo are being negotiated at higher prices, up by ¥2,000/t from earlier this month, prices in Osaka, Kyoei's home market, are still unchanged for several months. 

An industry source noted that in response to the strong sales push of mini-mills, prices of rebars from dealers have risen by ¥2,000/t since the end of March. However, there has been no increase in the prices of bars for direct shipping to large customers due to the fierce resistance of general contractors. 

Kyoei's production base for supplying rebars to the Tokyo market has been its consolidated subsidiary Kanto Steel, based in Tsuchiura in Ibaraki prefecture, north of Tokyo, which has a crude steel capacity of about 250,000 tonnes per year. Kyoei absorbed the company on April 1 and now operates it as Kyoei Steel Kanto Division.