Weak Structural Steel Bar Price in Osaka, Tokyo

Structural steel bar market price would decrease in Osaka and Tokyo. The price would decrease to around 120,000 yen per tonne for carbon steel bar for machine structural use around Osaka in March. The market price is around 125,000 yen around Tokyo but some dealers offer lower price. The market price is decreasing under loose supply.

The dealers’ shipment of carbon steel bar for machine structural is slow for construction machinery and industrial machinery around Osaka. The dealers expect lower price under the makers’ price cut and the buyers’ pressure for lower price. The dealers are also willing to reduce the inventory even at lower price toward end of fiscal year.

The price would decrease under loose supply around Tokyo. Market sources see the inventory is in line with the demand but the bar makers can accept additional order under low utilization rate. Japanese special steel bar import increased by 41% in from South Korea and other countries in December from November. The higher import would impact on domestic market price.