Weak Construction Steel Price in Tokyo, Osaka

H-beam market price is weak at 74,000-75,000 yen per tonne around Tokyo. Flat steel bar market price decreased by 2,000 yen to 78,000 yen per tonne around Osaka due to lower ferrous scrap price and steel market price. Lower ferrous scrap price cools the steel market when the market expects electric furnace steel makers would reduce the steel selling price.

H-beam price would decrease around Tokyo when the users reduce the bid price under weak ferrous scrap price. The inventory held by the dealers was almost unchanged at the end of October from September. The dealers try to reduce the inventory under slow demand when the users reduce the purchase with expectation for the price cut by local electric furnace steel makers.

The flat bar demand is decreasing around Osaka in and after October. One dealer source’s shipment decreased by around 20% in October from September. The price could decrease more.