H-beam market price is weakening around Tokyo and Osaka. Dealers are trying to maintain the reselling prices to keep profitability but H-beam market turned weak when electric furnace steel makers lowered their ferrous scrap purchase price. Some dealers have already decreased the reselling price with the users’ price cut requests. H-beam demand is decreasing in recent days. Some H-beam makers reduced the selling price for large-lot shipment to general contractors.
In Tokyo, the market price is weak at 73,000 yen per tonne for the size with 200 x 100 millimeters. Dealers are willing to keep the reselling price at above 75,000 yen to save profits. Dealers had announced price hike in August but they couldn’t achieve the hike so far due to low demand. Dealers’ profitability seems even severer in October when H-beam market price is decreasing. Around Osaka, the market price is around 70,000 yen for base size products. Dealers’ reselling prices are even lower in some cases under tough sales competitions. H-beam market inventory is decreasing by dealers’ inventory adjustment and makers’ order receipt reduction. However, the demand maintains low level after September since H-beam users increased inventories within August.Japan Steel Scrap Composite Prices (Sangyo Press)
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