H-beam market price is flat at 119,000 yen per tonne without freight for 200 by 100 millimeters width at dealers’ sites around Tokyo. The price shows sign to peak when the makers’ selling price has wide range of 105,000-128,000 yen. The price is likely to keep the level unless Nippon Steel would announce price hike for July order in early July. The dealers’ shipment is expected to decrease slightly in June from May when the demand keeps low level after speculative temporally demand in January-March. The dealers concern the future demand for the dealers’ market when many building construction plans are delayed and suspended partly due to higher steel price while the demand keeps strong for major building projects. The dealers’ inventory is likely to increase at end June from May due to lower demand. Nippon Steel tries to improve the supply balance by cutting the order receipt from dealers by around 35% for June order from May. The market still expects potential higher steel price due to higher ferrous scrap and iron ore price level. Some dealers are willing to pass the higher cost price on the market. However, most of the dealers try to find if the market could accept higher price when the buyers’ financial position gets worse due to surging steel price.
Japan Steel Scrap Composite Prices (Sangyo Press)
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