Japan’s rebar manufacturers in the Kanto region are likely to raise prices for November 2022 contracts due to rise in energy and electricity costs in the second half of the year (H2CY22). Furthermore, electricity costs have risen majorly because of surging crude oil and liquefied natural gas (LNG) prices following Russia’s invasion of Ukraine.
Demand for rebar increased last month prior to the price hike. However, enquiries from general contractors have stopped in November after the price hike. Two joint sales companies in the Kanto region had announced a price hike of JPY 10,000/t ($69/t) in end-October for November contracts. This was followed by small manufacturers raising prices.
The fuel cost adjustment rose to JPY 9.26 per kilowatt hour in November and will move up to JPY 11.36 per kilowatt hour in December, as per TEPCO Energy Partner.
In addition to soaring global fuel prices, currency devaluation has also pushed up import prices for energy, resulting in high import prices of raw materials such as ferroalloys and refractory materials for which producers are highly dependent on foreign countries.
Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.
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