Weak H-Beam Price in Tokyo

H-beam market price is expected to lower by 5,000 yen 100,000 yen per tonne for product with 200 by 100 millimeters width at the dealers’ site around Tokyo. Users are strongly offering the price cut against dealers. Some dealers are reselling H-beam at as low as 97,000-98,000 yen per tonne.

Japanese integrated steel maker revised down their H-beam demand forecast by 14% to approximately 900,000 tonnes for October-December from the previous estimation and by 15% to about 800,000 tonnes for January-March. The maker prospects a half-year demand by March 2009 at 1.7 million tonnes, down by 15% compared with the previous estimation. The demand might decline more for January-March when many building construction plans are postponed.

Japanese distributors’ H-beam inventory, held by Tokiwa-kai, which is a group of dealers dealing Nippon Steel’s products, decreased by 14% at the end of November from a month ago. The inventory is expected to decrease by over 10% in December. Dealers’ sales volume is decreasing by over 10% in November from October when the demand is weakening around Tokyo and cheaper H-beam is brought into Tokyo from other areas.

Nippon Steel and JFE Steel stopped order receipts for 2 consecutive months. Dealers’ warehousing volume around Tokyo is reducing in December from last month, which is expected to decrease by 30-40% in January from the original estimation.