Section Steel Price Stops Increasing in Tokyo

Section steel market price levels off around Tokyo. The price increased by around 20,000 yen per tonne in March-April. However, the price is flat in May while steel makers are likely to increase the price more. The market sources expect the price would increase.

The market price is 83,000 yen per tonne for H-beam and 83,000 yen for equal angle steel around Tokyo. The dealers increased the reselling price in March and April when the steel makers increased the price.

However, the inquiries decreased in May due to the slow demand. The dealers experience hard time to pass the cost price increase to the reselling price. The steel makers increased the price by 5,000 yen per tonne for the order in May and some dealers’ purchase price has already increased.

The dealers’ break-even point is 90,000 yen per tonne for H-beam and 88,000 yen for equal angle considering the price increase by the makers, according to a dealer source. The dealers try to increase the reselling price while the makers plan the price hike.