Section Steel Dealers to Seek Higher Price in Tokyo, Osaka

Section steels price would increase in Tokyo and Osaka. Some dealers have increased the offer by 3,000 yen per tonne until this week. The dealers aim to increase the price. The market price is 60,000-61,000 yen per tonne for H-beam, 70,000 yen for equal angle steel and 74,000 yen for channel steel. The price bottomed out after Tokyo Steel Manufacturing increased the selling price by 3,000 yen for order in February.

The dealers expect Nippon Steel and other integrated steel makers follow the hike by Tokyo Steel and try to increase the reselling price. Most dealers plan to increase section steels price by 3,000 yen per tonne from February 1. However, the dealers concern the higher offer could reduce the sales volume while the demand remains low.

The dealers around Osaka plan to increase beam reselling price to 60,000 yen per tonne from 58,000 yen. The dealers increased the low transaction price after some makers announced the price hike. However, the order receipt stays at low level after price hike announce by the makers. The inventory held by the dealers increased by 2.4% in December from November 2009, according to the dealers group around Osaka.