Weak H-Beam Price in Tokyo

H-beam market price is weak at 78,000-80,000 yen per tonne for products with 200 by 100 millimeters width around Tokyo. The dealers cannot make money for many transactions under slow shipment level even in July while the dealers are getting high priced materials from the makers. The market price is expected to keep decreasing with pessimistic outlook for the demand.

The dealers’ inventory increased slightly from May end level. The inventory increased by 12.7% to 176,021 tonnes at Tokyo, Osaka and Nagoya at end May from April, according to national association for steel dealers. The inventory is estimated to increase in June from May due to lower shipment level. The dealers try to reduce the stock level by reducing the new order to the makers.

Nippon Steel didn’t accept new order from the dealers for July shipment to improve the supply balance. Such effort is expected to improve the supply condition. Some dealers report they have some stock out sizes at their warehouses. However, the dealers try to secure the sales volume even at lower price when the demand keeps very slow level.