Japan Shaped Steel Market Price Decreases by 1,000-2,000 yen in June

Shaped steel market price decreased by 1,000-2,000 yen per tonne in June around Tokyo. H-beam price is 81,000-82,000 yen for base size, which downturned for the first time in 6 months. Tokyo Steel Manufacturing, Japanese largest slsectirc furnace steel maker, announced the price down in mid May. The market price is likely to edge downward when the users’ orders maintain low level in June.

Angle steel market price is 82,000-83,000 yen. Channel steel market price is 84.000-85,000 yen. Major makers set the sales price unchanged while Tokyo Steel lowered the price of channel steel.

H-beam selling price of integrated steel makers is higher than electric furnace makers’ by more than 5,000 yen. Dealers around Tokyo keep the reselling price since they purchase the products mainly from integrated steel makers. The dealers’ sales volume decreased in May. Dealers are continuing inventory adjustment but actually the inventory is increasing.

The users’ order volume is likely to maintain low level. Demand for disaster areas’ restoration and large building projects in Tokyo are expected to increase several months later. Users buy steel products on spot due to anticipation of market price fall.

Angle and channel steel prices decreased to 80,000 yen per tonne around Osaka. Some dealers sell these products at below 80,000 yen. The market price seems to maintain downtrend. One dealer source said users’ orders are unlikely to increase since the actual demand is inactive and local dealers prevent speculative material purchasing. The market inventory is increasing and some products’ inventory is excess against shipment.