H-beam market price would increase from 82,000-83,000 yen per tonne around Tokyo. The price increase pace is slower than before when the order from buyers decreases under the uncertain demand. The price is likely to increase more even at slower pace when the dealers try to find timing to find timing to increase the reselling price to pass higher cost price under low level inventory.
The inventory held by dealers seemed to increase slightly at the end of January from December while the arrivals increased from the makers. The dealers’ shipment decreases compared with January when the buyers’ order decreased after their inventory building attempt at lower price. The dealers plan to increase the offer to 85,000 yen per tonne while the market price is more than 10,000 yen higher than the level in the beginning of January. The dealers aim to increase the reselling price gradually while the users resist the price hike. Channel steel price increased to around 83,000 yen per tonne around Osaka. The price would increase more when steel makers announced additional price hike. The order receipt of the dealers decreased since mid January while the demand was firm from last autumn through early January. The order volume is higher compared with the bottom in 2010. However, the demand slows when the users completed restocking through early January, according to dealer source. The dealers’ inventory is gradually increasing. However, the dealer source expects the inventory would not soar when the dealers could not increase the purchase volume due to higher makers’ price.Japan Steel Scrap Composite Prices (Sangyo Press)
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