Osaka Steel Raises Angle and Channel Prices by 5,000 yen/t in December

Osaka Steel, Japanese major angle and channel maker, announced on Thursday the firm raises the selling price of equal angle, unequal angle and channel by 5,000 yen per tonne in December from November. The firm continues reduction of output volume and order acceptance. Market demand for building materials stays at low level, which is unlikely to recover in a short term. Dealers’ inventory is low thanks to shape steel makers’ production cut. Meanwhile, ferrous scrap price upsurge impacts the makers’ profitability.

In Tokyo, H-beam market price hit bottom at 69,000-71,000 yen per tonne. Dealers’ reselling price is almost as same as makers’ selling price. Dealers are suffered from scarce margin. Dealers aim to raise the reselling price to 70,000 yen at the cheapest. However, the market price is likely to level off along users’ severe price cut requests.

H-beam orders maintain low though the users temporarily increased the orders last week when Tokyo Steel Manufacturing was expected to increase the selling price. Meanwhile, dealers’ inventory level is balanced around Tokyo since they have tried to minimize inventories. Consequently dealers don’t accept too cheap prices.

H-beam market price reached 80,000 yen in June when steel makers raised the selling price due to rising raw material costs. After June, the market price dropped by over 10,000 yen along makers’ price down. Dealers’ inventory valuation loss increased.