Large diameter square column steel pipe market price is firm at 102,000 yen per tonne including cutting and beveling process charge for STKR product with 12 millimeters thick and 300 by 300 mm width and at 110,000 yen for BCR product around Tokyo. The price recovered 100,000 yen for STKR and could increase more when the dealers try to pass makers’ 5,000 yen hike. The market price was less than 100,000 yen per tonne for STKR before makers announced the hike. With the hike, the dealers try to increase the reselling price to secure profitability when their profit is already narrow. The dealers couldn’t pass all of higher cost price to the reselling price even for makers’ hikes 2 years ago. The dealers now try to improve the profit as soon as possible when the stock is replaced with higher priced materials gradually. The dealers’ sales volume decreased by 7.5% in August from July, according to Tokyo Steel Product Dealers Association. The inventory decreased by 1.3% due to 12.6% lower arrivals from makers. A dealer source said the order backlog for the processing is 4-5 days and the order gets lower from before. Despite of the slower demand, the dealers try to pass the higher cost price.
Japan Steel Scrap Composite Prices (Sangyo Press)
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