H-beam Price Could Stop Decreasing in Tokyo

H-beam market price would stop decreasing from 78,000-79,000 yen per tonne around Tokyo. The demand is still low level. However, the dealers now expect the makers’ selling price wouldn’t decrease. The dealers try to secure margin based on the current cot price. The market price would hit bottom soon.

The dealers are avoiding loss making transaction recently after Tokyo Steel Manufacturing left steel selling price including H-beam unchanged for July order and higher scrap market could lift the makers’ selling price.

Some dealers’ H-beam selling price is less than purchase price. The dealers’ loss is apparently increasing when price of integrated steel makers’ H-beam, which has a majority in the market around Tokyo, is higher than the dealers’ reselling price.

Some dealers’ H-beam transaction price is still low when the demand remains low. However, gap between the low transaction price and the market price is getting small. The market price could increase depending on construction demand.