Weak H-Beam Price in Tokyo

H-beam market price is weak at around 105,000 yen per tonne for product with 200 by 100 millimeters width at the dealers’ site around Tokyo. The market expects lower price while Nippon Steel keeps the selling price for January shipment. The price is likely to decrease more when the buyers increase the pressure for lower price under slow demand.

The dealers’ inventory increases slightly from end of November. The delivery from the makers decrease by around 10% when the makers cut the order receipt from the dealers. However, the overstock condition continues under the lower shipment when the buyers minimize the purchase volume to wait lower price.

Nippon Steel didn’t accept order from the dealers for 2 months in a row to improve the supply balance. However, the inventory adjustment could take more time when the demand decreases due to postpone and suspension of building plans.

The market focuses on the pricing announcement by Tokyo Steel Manufacturing for January shipment. Some market sources expect the firm would reduce the selling price from 78,000 yen per tonne when the market expects electric furnace steel makers have more room for price down with current ferrous scrap market.