Price Hike Pressure by Flat Bar Dealers

Flat bar market price is flat at around 89,000 yen per tonne without freight around Tokyo. The distributors finally increased the reselling price to the level after the effort to pass 3,000 yen per tonne hike for April order by the makers. The dealers still try to increase the reselling price by 2,000-3,000 yen more. The demand for building is slow due to transition to new building standard law. However, the demand keeps firm for shipbuilding, construction and industrial machinery applications. The dealers’ shipment is relative higher compared with suppressed H-beam demand. Tight supply of plate steel also supports flat bar demand. Ferrous scrap market price is expected to turn into increase again after current adjustment phase temporally. The dealers try to increase the selling price to the profitable level when the makers could increase the selling price additionally.