Angle and channel steel market price started in strong tone this year around Tokyo when steel makers announced their price hike at the end of 2006. Orders from dealers are mainly small lots. However, dealer source said order volume is extent compared with the end of last year. Dealers started announcement that they raise their reselling price by 2,000 yen per tonne to users from this week. The market price is expected to rise. Material price, mainly for ferrous scrap, is rising intensively. Steel makers raised their selling price by 2,000 yen per tonne for January contracts when they prospect the material price keeps high level. They will continue the reduction of order acceptance volume to advance price hike penetration and to consider increasing inventory at some dealers. The market price is at 70,000 yen per tonne for equal angle with 6 millimeters thick and 50 mm width and at 75,000-76,000 yen per tonne for channel with 5 millimeters thick and 50 by 100 mm width at dealers’ reselling price without freight around Tokyo. Steel makers raised their selling price by 2,000 yen per tonne for contract in June 2006. However, dealers could only raise their reselling price by 1,000 yen. Dealers’ profitability became lower. Because new high-price products would be delivered to dealers from steel maker this month, dealers will show strong selling stances.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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