H-beam Price Decreases by 2,000 y/t, Tokyo

H-beam market price decreased by 2,000 yen to 123,000 yen per tonne for the base size in the latter of last week around Tokyo. Some dealers sell as high as 125,000 yen. The market price is expected to more fall when many electric furnace steel makers reduced the selling price to follow Tokyo Steel Manufacturing’ price cut.

H-beam users are enhancing to request the price cut to dealers when Tokyo Steel Manufacturing decreased the selling price by 35,000 yen per tonne for November contracts or when the purchase price of ferrous scrap by electric furnace steel makers is decreasing to around 15,000 yen.

Users’ order to dealers keeps low. A large dealer source said dealers’ shipping was record low in October for this year. The anticipation of a fall is spreading in the market. Users hold off the buying.

Cheaper products are flowing into Tokyo from other regions. Some dealers around Tokyo are selling the products at cheaper prices to reduce their inventory. Major general contractors aim to purchase rebar at below 80,000 yen per tonne around Tokyo, those who will request more price cut to reflect price down of ferrous scrap.

Kyoei Steel announced the firm reduces the rebar selling price by 20,000 yen to 95,000 yen per tonne around Osaka, but the users didn’t increase the purchase volume. Users will request more price cut to Kyoei Steel. A general contractor source said makers must decrease the selling price along ferrous scrap downturn because they have raised the selling price with rising ferrous scrap price.

In the past, rebar makers have alleged the rebar price should be cheaper than H-beam by 10,000 yen per tonne. A general contractor said the rebar price is decent at 70,000-75,000 yen per tonne because Tokyo Steel Manufacturing and Yamato Steel decreased the selling price of H-beam to 80,000 yen.

General contactors decreased the orders to below about 100,000 tonnes in October compared with 250,000 tonnes of normal months around Tokyo.