Domestic flat steel dealers see Tokyo Steel Manufacturing couldn’t raise the selling price due to slow demand in the dealers’ market. Long products dealers also welcome the price freeze while some of them expected Tokyo Steel’s price down could impact on their reselling price.
The dealers apparently resist sheet price hike attempt by integrated steel makers. A major sheet dealer source said the market decide the price regardless of makers’ attempt. The makers including Tokyo Steel apparently adjust the price for the dealers. The plate dealers expect the market price would keep the level. A plate dealer said the dealers could shift to electric furnace steel makers’ plate when the price gap is 5,000-6,000 yen per tonne between integrated steels and Tokyo Steel. H-beam market price is 72,000-74,000 yen per tonne around Tokyo. The dealers cannot pass the higher cost price on the reselling price due to slow demand. The dealers try to keep the price level despite of the price down request by the buyers and to find timing to increase the reselling price.Japan Steel Scrap Composite Prices (Sangyo Press)
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