H-beam price decreased by 2,000 yen to around 73,000 yen per tonne around Osaka. The dealers try to keep the selling price under price downward trend.
Local H-beam users reduced the purchase with expectation for lower price after local electric furnace steel makers announced the selling price cut for November. Some dealers reduced the selling price to meet the users’ demand and the market price decreased for the first time since June. Due to large volatile ferrous scrap price, local electric furnace steels announced H-beam selling price hike for October and the price cut for November. The dealers with inventory cannot secure profitable margin due to up and down of the cost price in short period of time. The dealers try to secure the margin based on the current price. The effort results in relative smaller price decrease than usual while the dealers were more sensitive for the makers’ price change. The users reduced H-beam order due to the expectation for lower price. The dealers’ inventory increased due to higher purchase volume. One dealer source sees the price could decrease more.Japan Steel Scrap Composite Prices (Sangyo Press)
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