H-beam market price is likely to keep flat at around 75,000 yen per tonne around Tokyo. The market has uncertainty when some dealers expect Tokyo Steel Manufacturing could reduce the selling price for September order despite of better demand and cost pressure.
The distributors’ shipment improves when according to Tokiwa-kai, which is a group of distributors dealing Nippon Steel’s products, the shipment of members around Tokyo increased to 30,034 tonnes in July. Nippon Steel Trading tries to increase the reselling price by 2,000 yen per tonne to cover higher freight under surging crude oil. The cost pressure could lift the local market. The demand was slow earlier the year due to fabrication scandal of structural calculation sheet. The distributors’ inventory held by Tokiwa-kai members around Tokyo increased to 2.45 months of shipment at the peak in March. The supply balance reduced the market price to 74,000 yen per tonne in March-April. Domestic 3 integrated steel makers reduced the output to improve the supply balance under the lower demand. With the lower supply, the distributors’ inventory decreased to 2.14 months of shipment in July.Japan Steel Scrap Composite Prices (Sangyo Press)
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