Section Steels Price Increase Slows in Osaka

Section steels market price increase slows around Osaka while the dealers have not fully passed higher cost on reselling price. The section steels demand slows while the dealers try to increase reselling price. The market price is 85,000 yen per tonne for equal angle steel and channel and 83,000 yen for H-beam.

Steel makers increased the selling price one after another since November 2010 due to higher ferrous scrap price. The market price increased by 2,000 yen per tonne for equal-angle and channel and by 5,000 yen for H-beam since February when the dealers tried to improve the profitability under special demand due to recovery from the damage by major earthquake.

However, the dealers’ selling price is below the cost price while the demand plunged down under stop of the special demand in April. The market price seems to have peaked out.

H-beam market price would increase from 83,000 yen per tonne around Tokyo when the dealers try to increase the reselling price to 85,000 yen.

The order returned to normal level in April when special demand due to the major earthquake stopped in March.

Ferrous scrap price is increasing. However, dealer sources see Tokyo Steel Manufacturing would leave the price unchanged for May order when the firm left the selling price for April under the scrap price decline.