Firm Flat Bar Price in Tokyo

Flat bar market price is firm at around 132,000 yen per tonne for 6 millimeters thick and 50 mm width product at dealers’ site without freight around Tokyo. The dealers offer 135,000 yen in the week to cover higher cost price. The market is expected to increase more when the market expects higher price under higher ferrous scrap market.

The dealers’ inventory keeps low level since end May. The inventory level is likely to decrease more when the makers cut order receipt from distributors by 35-40% from previous month. The dealers also try to minimize the inventory level just enough to the shipment when the higher price pressures on the liquidity.

The dealers’ shipment keeps low level after speculative purchase demand in February and March. The buyers continue small lot purchase just for immediate requirement. The dealers’ expect the demand will decrease toward summer and the demand is uncertain after summer.

The dealers try to insist the higher offer to cover price hike by the makers. With the supply side pressure, the market price could increase more at slower pace than before when the buyers started to resist the higher price after the price already jumped to record high level.