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[ferro-alloys.com]Japan's largest rebar producer Kyoei Steel Wednesday raised its rebar prices by Yen 2,000/mt ($18/mt) for September contracts.

Osaka-based Kyoei does not release its list prices. Current market prices for base-sized rebar in Osaka are around Yen 66,000-67,000/mt ($600-$609/mt), down Yen 1,000/mt from a month ago, and in Tokyo are around Yen 73,000-74,000/mt, unchanged over the same period.

Kyoei in a statement said it has been keeping prices unchanged while previous hikes were absorbed by the market. However, with the supply-demand balance for rebars tightening through the summer production cut, it was now raising prices to shift increasing production costs, such as for electrode and other materials, to customers.

Kyoei last lifted its rebar prices by Yen 3,000/mt for April contracts.

A Tokyo-based distributor said producers have been taking a strong stance on prices recently, so distributors will also need to eye higher sales prices.

"Inquiries were slower in summer so some distributors accepted lower priced orders to secure sales, but we expect inquiries to become active; we will be able to select higher priced orders," he said.

Japan's Ministry of Land, Infrastructure, transport and Tourism has forecast Japan's small bar demand from the construction sector in September at 570,000 mt, down 5.7% year on year but up 3.6% from August.

• [Editor:王可]