Firm Angle, Channel Price in Tokyo

Angle steel market price is firm at 119,000 yen per tonne for product with 6 millimeters thick and 50 mm width without freight at dealers’ site around Tokyo. Channel steel is 124,000 yen for product with 5 mm thick, 50 by 100 mm width. The market regained the rising mood after temporally flat move after additional 3,000 yen hike announcement by the makers. The supply balance is easing when the dealers hold around 3 months inventory of shipment for channel and around 2.5 months for channel due to slower shipment. Some dealers, however, expect the supply would get tighter when the makers reduced the new order receipt from dealers to reduce the order backlog to around 1 month level. The dealers offer 125,000 yen per tonne for angle and some dealers would increase the offer to 130,000 yen level. The market expects higher price again with rising ferrous scrap market while some still forecast the market is peaking. The cost push pressure could lift the market higher while the demand is expected to keep slow during summer.