Sections Price Drops to Level in March 2008 in Tokyo

H-beam, equal-angle steel and channel market price declined to less than 100,000 yen per tonne around Tokyo for the first time since March 2008. The price keeps declining due to the slower demand and the inflow of lower priced products from other areas.

The beam market price declined by total 32,000 yen to 95,000 yen per tonne for base size around Tokyo compared with the peak in September 2008 while the price declined by 29,000 yen to 99,000 yen tonne for channel and to 94,000 yen for equal-angle. Steel column price decreased by 4,000 yen to 148,000 yen per tonne from the peak when the other sections price declined and demand weakened.

Demand of steels for construction weakened since the beginning of fall 2008 due to postpone and cancelation of building plans. Recently some dealers sell at lower price under the demand softening. Sections inventory is at higher level against lower demand while equal-angle inventory adjustment is finished. The adjustment of beam inventory seems to continue through February or March.

Sections price around Tokyo is about 10,000 yen more expensive than around Osaka. The price around Tokyo is expected to decrease more approaching to low price in other areas.