Shape Steel Distributors Try to Raise Reselling Price in Tokyo, Osaka

Japanese shape steel market price is in uptrend. The market price is 81,000-83,000 yen per tonne for equal angle with 6 millimeters thick by 50 mm width and 83,000-85,000 yen per tonne for channel with 5 mm thickness, 50 by 100 mm width around Tokyo. Local dealers are trying to raise the reselling price after steel makers increased the selling price by 3,000 yen. In Osaka, H-beam market price is around 80,000 yen per tonne for base sized products. Distributors are aggressively offering price hike after long holidays in early May.

However, market demand for shape steels hasn’t recovered yet. Distributors’ channel and equal angle inventories kept almost flat at the end of April from a month earlier in Tokyo. Distributors are minimizing orders to steel makers due to slow demand especially from constructions. Distributors around Tokyo are appealing 85,000 yen for equal angle and 87,000-88,000 yen for channel.

In Osaka, H-beam order receipts and shipment volume maintains weak at dealers in and after April. There was much volume of speculative orders in February-March and stock shortage emerged for some sizes. Distributors’ inventory has increased since February-March but most dealers regards the current inventory is the moderate level. Meanwhile, a dealer source pointed out, inventory is tighter for H-beam than angle and channel.