Nippon Steel increases H-beam selling price by 2,000 yen per tonne for the dealers for April order after the firm increased the price by 3,000 yen for March order. The firm increased the spot selling price by more than 5,000 yen for building projects. The firm tries to improve the price level while the firm keeps production cut for better supply balance.
The firm conducts temporarily production stop of large shape mill at Kimitsu works in early April. The firm also decided lower operation rate in April-June to improve the supply balance. The firm sees the dealers’ inventory is still high and most of the supply chain players including the makers, dealers and fabricators lose money. The firm expects the price hike could improve the profitability. The firm expects the demand will recover gradually in and after May when small scale building activity increases for shop, welfare facilities and earthquake strengthening works. The firm estimates the demand pushes H-beam demand by more than 5% from current level to support the price hike attempt. The dealers could resist the price hike. However, total 5,000 yen per tonne of hike could push up the dealers’ reselling price. The success of the attempt depends on other makers’ price move.Japan Steel Scrap Composite Prices (Sangyo Press)
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