Japan Carbon Steel Market Price to Rise

Japanese price of carbon steel products is expected to hit bottom for almost all items in spring while the price decreased since 2008. Some of the price will rebound. Japanese steel market price will increase due to Chinese strong demand while the integrated steel makers are in negotiation for price of iron ore and coking coal for fiscal 2010 starting April.

The domestic demand is shrunk for construction demand under slow economy. The demand shows no sign to recover. The dealers try to increase the reselling price to secure profit with higher selling price by the makers while the domestic demand is very slow.

The domestic steel demand decreased since late fiscal 2008 due to worldwide slow economy. The demand recovers for automobile while the demand is still slow for building, shipbuilding and construction and industrial machinery. The domestic market price decreased under oversupply. The price of some steel items decreased by 30,000-50,000 yen per tonne from recent peak. The dealers cannot make profit unde the market.

Nippon Steel announced 5,000 yen per tonne price hike for H-beam in February order citing fill the gap with export price despite of the slow domestic demand and sales. The price hike attempt is the first time since September 2009 while the firm increased the spot selling price by 5,000 yen. Tokyo Steel Manufacturing increased the selling price by 3,000 yen to improve the profitability to cover higher cost for ferrous scrap. Other concrete reinforcing steel bar makers announced the price hike. Local rebar makers in Tokyo announced rebar price hike.

Domestic market price shows sign to increase for long and flat products when the integrated steel makers and electric furnace steel makers increase the selling price. The price hit bottom in the month for hot rolled flat steel, plate, rebar, angle and channel and H-beam around Tokyo.

The price of hot rolled flat steel, rebar and H-beam recently. The price is dull for steel pipe, galvanizing steel and wire products. The market price is expected to recover in spring depending on the demand condition.