H-Beam Price Rises in Tokyo

H-beam market price increased by 1,000 yen to 119,000 yen per tonne without freight at dealers’ site around Tokyo in the week while the transaction price is 118,000-120,000 yen range. The price increases gradually when the dealers offer 120,000 yen since mid-May. The price is likely to keep the level for a while. The price is around 1.5 times of the level in the beginning of the year. The dealers already passed the higher cost price on the market despite of the wide hikes by the makers. The price is expected to keep the level if Nippon Steel would keep the selling price for June order in the announcement in early June. The dealers’ inventory level is in line with April end. The inventory is around 2 months of the shipment under the slower demand and the inventory gets normal from tight position before. The market still expects higher price level when the ferrous scrap price keeps increasing. However, the dealers secure rich margin with the record market price while they are cautious about potential insolvency of the buyers under the higher steel price.