H-beam market price decreases to 78,000 yen per tonne around Osaka, which decreased to less than 80,000 yen for the first time in around 2 months. The price is expected to decrease more when electric furnace steel makers reduced the price for June.
The demand is very slow partly due to inventory building demand just after the major earthquake. The dealers’ inventory at end of April reached the first 40,000 tonnes since July 2010, according to local dealers’ group. The inventory adjustment could take time while the dealers try to reduce the stock level. Tokyo Steel Manufacturing, Yamato Steel and Sumikin Steel & Shapes reduced the selling price by 5,000 yen per tonne for June. The price cut accelerates the market price decrease. Japanese H-beam import increased by 79.6% to 82,793 tonnes in fiscal 2010 ended March 2011 from fiscal 2009. The import doubled from South Korea and China. The averaged import unit value was around CIF 62,500 yen per tonne. The import could increase when Japanese steel makers increase the selling price. Japanese H-beam export increased by 21.4% to 431,918 tonnes. The averaged unit price was around FOB 59,800 yen per tonne.Japan Steel Scrap Composite Prices (Sangyo Press)
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