Steel for construction drops by 1,000-2,000 yen per tonne both around Tokyo and Nagoya

Section steel price around Tokyo decreased by around 1,000 yen per tonne in last week. Market price is at around 122,000 yen per tonne for equal-angle steel and 127,000 yen for channel steel for base size. Steel products price for building construction around Nagoya also decreased by around 2,000 yen per tonne. Market price is at around 123,000 yen per tonne for H-beam for base size and 113,000 yen for concrete reinforcing steel bar for direct shipment from makers to users. Dealers cut a price when the demand decreased duet to construction market stagnancy and Tokyo Steel Manufacturing reduced the price for September shipment while ferrous scrap price decreased. Market price trend would weaken when the demand for construction appears not to increase soon.

Dealers around Tokyo tried to keep the selling price when they have bought angle for around 116,000 yen from makers but they had to cut a price from weak demand. Makers around Tokyo hold the price at 116,000 yen per tonne for October shipment and are cutting the supply by 20-30% from September. However market price is likely to decrease when ferrous scrap price have turned downward. Around Nagoya, dealers’ shipment decreased by around 30% when users are decreasing the procurement for expecting price reduction.