Market Price Slumbers for Steel Construction Materials, Tokyo

Market price slumbers for steel construction materials around Tokyo. Steel makers have raised selling prices for H-beam, large diameter square tube, angle and channel, while wholesalers haven’t passed the cost up on their reselling prices. H-beam market price levels off at 73,000 yen per tonne for base size while column BCR market price is weak at 95,000-100,000 yen per tonne. The market is unlikely to turn upward in a short term when the demand is unexpected to recover in autumn.

Local electric furnace steel makers including Tokyo Steel Manufacturing raised H-beam price by 3,000 yen per tonne for September contracts. Dealers are facing difficulty to reflect the makers’ hike on the reselling price due to low demand. H-beam market inventory seems excess against the current demand though dealers’ inventory is estimated to have decreased by 10% at the end of August from a month earlier.

Integrated steel makers’ H-beam accounts for 60% in the regional market around Tokyo. Integrated steels’ selling price maintains above 80,000 yen per tonne and dealers are suffered from low profitability compared with other regions. Dealers hope to increase the reselling price to 75,000 yen per tonne at least but the hike hasn’t realized.

Column steel makers seem to have announced the price hike by 5,000 yen per tonne against dealers. However, dealers will be unable to pass high cost price when general contractors’ order receipts stay at the bottom level. Dealers’ reselling price is currently reaching 90,000 yen per tonne at least but the users are strongly requesting price cut.