Japanese welded steel pipe makers try to keep the price level by reducing output in October-March period when the dealers’ shipment decreases under very slow building market. Most of the makers expect the demand could keep low in the year and reduce output by 10-30% from original plan. The steel pipe demand is firm for automobile and industrial machinery. The construction materials pipe turned into slump since April. The dealers’ shipment is very slow especially since August when building activity dropped sharply caused by new building standard law. Japanese integrated steel makers increased sheet materials and imported sheet price also keeps high. The welded pipe makers increased the selling price by 5,000 yen per tonne for June or July shipment to cover higher cost price. The dealers tried to pass the higher cost price on the market but the market didn’t accept the higher price under slow demand. The dealers reduce the pipe order for the makers. The pipe makers try to keep the profitable price level by reducing the supply volume to balance the supply and demand.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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