Tokyo Steel’s Price Cut Makes Impact to Dealers

One steel sheet dealer source around Tokyo said he got shocked by the selling price cut by Tokyo Steel Manufacturing for the contract in December though he forecasted the price cut under dropped ferrous scrap price.

It becomes hard dealers keep the sales price of steel sheet when Tokyo Steel’s sales price was below 60,000 yen per tonne for hot rolled and pickled steel sheet. It grows conservative buying due to anticipation of a fall. One dealer source said some dealers are expected to reduce the sales price in as soon as within this week.

One plate dealer source said he received the impression as largely price cut for Tokyo Steel’s price announcement and he forecasts users more request price cut to dealers. The market price is already weak due to low demand. There is high possible that users decrease sending in order to dealers by Tokyo Steel’s price cut. Japanese integrated steel makers and other electric furnace steel makers are expected to decrease selling price. The market price seems to maintain downward trend for standard size and cut plate with up or down of ferrous scrap price.

One shaped steel dealer said he forecasted Tokyo Steel’s price cut, but the market price may decrease and users are expected to press the dealers to cut selling price.

The market price is weak at 74,000-75,000 yen per tonne for H-beam around Tokyo. Tokyo Steel’s sales price is 69,000 yen per tonne. However, dealers can’t comply with users’ request for price cut when dealers’ profit is already severe.

Other dealer source said there is low possible other rebar makers comply with request of price cut by users when ferrous scrap price hit bottom around Tokyo.