Electric furnace steel makers around Osaka continue H-beam production cut by 30-45% against the usual level in September. They expect for H-beam reselling price improvement by output adjustment along the actual demand. The demand from construction market shows a recovering sign but the volume still maintains small. There are few small-middle size building constructions in the region. Steel flame fabrication seems to have peaked out for one large size building project. Meanwhile, some of postponed building projects are slightly restarting. Dealers’ H-beam inventory has decreased for July-August along steel makers’ production cut. In addition, ferrous scrap market price is likely to turn upward. Steel makers feel necessity to improve H-beam piece level.
Yamato Steel plans to reduce H-beam production by about 13% for July-September from April-June, which is 40-45% output cut against the normal level. In September, the firm’s production is likely to decrease from August due to less order receipts along the price hike. Sumikin Steel’s H-beam production decreased by near 50% in July from normal time due to periodic maintenance. The production cut was near 40% in August. In September, the output cut range would narrow to around 30% with more operating days. Osaka works of Godo Steel decreased H-beam and other shape steel output by about 40% for April-June from normal time. The works continues the same range output cut for July-September.Japan Steel Scrap Composite Prices (Sangyo Press)
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