Flat Angle and Channel Price in Tokyo

Equal angle market price is 71,000-72,000 yen per tonne for product with 6 millimeters thick and 50 mm width around Tokyo. Channel price is 77,000-78,000 yen for product with 5 mm thick and 50 by 100 mm width. The prices keep the higher level after increase in the end of January. The price is expected to keep the level after distributors’ long lasting price hike effort since summer of 2006. The supply balance is likely to keep the condition when the makers reduce the shipment for distributors despite of the slower demand season. The makers are expected to keep improving the margin when they expect ferrous scrap price will be 30,000-35,000 yen per tonne for the year starting April. The distributors still try to find the chance to pass the part of higher cost price after the makers increased the selling price in June 2006 and January 2007. The distributors are willing to improve the margin depending on the makers’ move.