Weak H-beam Price around Tokyo

H-beam market price is weak tone at 117,000-118,000 yen per tonne for 200 by 100 millimeters width at dealers’ sites around Tokyo. Users are strengthening price cut offers against dealers when Tokyo Steel Manufacturing, Japanese biggest H-beam maker decreased H-beam selling price by 5,000 yen per tonne. Some dealers are reducing the reselling price due to less order receipt volume.

Dealers’ inventory is decreasing slightly from last month. Their warehousing volume decreased by 10% in November from last month while their shipping volume decreased by 10-15%. Dealers are advancing inventory adjustment but the adjustment doesn’t progress due to slower shipment.

Integrated steel makers stopped H-beam order acceptance in November but the supply and demand maintains loose. Dealers are in distress when the purchase price is different between integrated steels and Tokyo Steel Manufacturing since Tokyo Steel announced the additional price down for December shipment. One point is whether other electric furnaces may lower the selling price to follow Tokyo Steel.