H-beam market price would increase from 83,000 yen per tonne for base size with 200 by 100 millimeters width. The dealers try to increase the reselling price to 85,000 yen to pass higher cost price. The dealers try to improve the loss making situation by realizing higher reselling price as soon as possible.
The dealers’ inventory status is mixed depending on the impact by the major earthquake. Some dealers reduced the inventory to meet higher order after the quake when other dealers cannot operate due to the damage. The dealers’ stock apparently increased due to steel makers’ accelerated shipment before fiscal year end on March 31. The demand of H-beam increases for some sizes including 100 by 100 mm width due to special demand for temporary houses of the quake victims. The housing makers increase the order to secure H-beam for temporary houses while the makers still wait for official order for temporary houses. Some dealers around Tokyo recognize higher order from Tohoku area when the quake damaged many of local dealers’ facilities in Tohoku. The dealers around Tokyo would serve buyers in Tohoku instead of Tohoku’s dealers, which are still working to resume the operations.Japan Steel Scrap Composite Prices (Sangyo Press)
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