Weak H-Beam Market in Tokyo

H-beam market price is flat at around 80,000 yen per tonne for 200 by 100 millimeters width around Tokyo when building start is very slow due to confusion for new building standard law. The distributors try to keep the price level with support by higher cost price. The high cost price suffers the dealers’ profitability when they cannot pass the cost increase on the reselling price along with the reduced shipment. Some dealers make loss monthly basis due to higher cost and low shipment level. They also face potential bankrupt of the buyers when slow building demand damages steel structure fabricators and small general contractors. The dealers’ stock increased by 6.9% to 40,382 tonnes at end of November from October, according to Tokyo Steel Product Dealers Association. The shipment dropped by 10.6% to 13,382 tonnes and the arrival increased by 1.8% to 16,413 tonnes. The dealers’ shipment still low level despite of the demand season. Nippon Steel announced the firm reduces the supply for distributors by more than 80% from normal level for December order. Sumikin Steel & Shapes reduces the supply by 10% for January from December after 30% cut for November from October and 10% cut for December from November.