H-beam Market Price Drops by 2,000 y/t

H-beam Market price decreased to by 2,000 yen to 75,000 yen per tonne this week from last week around Tokyo when Japanese largest electric furnace steel maker, Tokyo Steel Manufacturing, reduced selling price of H-beam by 3,000 yen. Dealers’ shipment remains stagnant in July due to low demand.

Demand for steel frame increased by 34.9% to 120,436 tonnes in May from a year earlier around Tokyo, which increased for 2 consecutive months, while is below 150,000 tonnes in the same month of last year.

Order competition becomes sever to accept the building construction project around Tokyo when local demand hovers at low level. Because general contractors accept order with the red, they are requiring price cut to H-beam dealers.

The supply and demand balance is loose, while is expected to be tighten when Nippon Steel doesn’t accept order of H-beam from dealers for the order in July.

Selling price of Japanese integrated steel makers is 15,000 yen per tonne higher than electric furnace makers’ price. Dealers want to maintain selling price, but are forced to reduce selling price due to low demand.

H-beam market price is weak at 72,000 yen around Osaka. A dealer source said there is highly possible that other electric furnace makers reduce selling price of H-beam after Tokyo Steel’s price cut, and the market price has already been decreasing before makers’ price cut. The market inventory volume is excess against demand level.