H-beam market price is flat with strong tone at around 80,000 yen per tonne for base size with 200 by 100 millimeters width around Tokyo. Many dealers’ shipment decreased by 10-30% in September from August. The inventory was flat at the ended of September due to decreased dealers’ order and makers’ acceptance. If the demand would recover, the market price would rise due to dealers’ price hike.However, the demand isn’t expected to recover rapidly. Building construction area of steel structure decreased by 45.7% in August from the same month of last year, according to Ministry of Land, Infrastructure and Transport. The demand is less likely to recover within this year due to low building construction area. The general view is that the revision of building standard law is seemed to make impact to building construction situation.H-beam makers would like to raise their selling price due to increased ferrous scrap price, increased sub material price and increased freight cost. Each maker announced they raised the selling price by 3,000 yen per tonne in August-September. However, dealers can’t wholly pass the purchasing price hike on their selling price. If makers increase their selling price, it becomes hard that dealers would hold efficiency profit in this market price level.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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