H-beam price is firm at 75,000 yen per tonne for base size with 200 x 100 millimeters width at dealers’ sites without freight around Tokyo. Nippon Steel announced the firm reduces H-beam order reception volume from distributors in Tokyo by about 30% for November contracts from October. Distributors are likely to advance reselling price hike under the situation, while they could not pass increasing cost price on their reselling prices so far due to overstock in the market. Market price could increase.Distributors, mainly trading houses have sought to raise their reselling prices following price hike by makers this autumn. However, they could only improve the bottom of market price when H-beam shipment did not increase as expected.Inventory to shipment ratio was 2.01 months in Tokyo at the end of October at distributors dealing Nippon Steel’s products. The ratio exceeded 2 months only in Tokyo, while below 2 months in Osaka and Nagoya. However, supply could be tightened by Nippon Steel’s order receiving reduction.Tokyo Steel Manufacturing announced on Monday the firm keeps H-beam selling price unchanged for December contracts from the previous month. Distributors have strong selling stances to raise reselling price.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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