Equal angle price is firm at 69,000 yen per tonne for product with 6 by 50 millimeters width without freight around Tokyo. Channel price is 75,000-76,000 yen for product with 5 by 50 by 100 mm. The price is likely to increase next week after the distributors started the effort to increase the reselling price by 2,000 yen in this week. The transaction resumed the normal level for a week after year end holiday. The distributors started the price increase effort after the makers announced 2,000 yen per tonne of price hike in late 2006. The market price is increasing around Osaka and northern Japan. The distributors could pass the higher cost price only by 1,000 yen per tonne after the makers increased the selling price by 2,000 yen in June. The additional hike squeezes the distributors more. The distributors rush to improve the profitability through the price increase move. The supply condition is favorable for the distributors when the makers try to reduce shipment for distributors along with the balanced dealers’ inventory level.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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