H-beam Price is Likely to Rise around Osaka

H-beam market price is around 58,000 yen per tonne in Osaka area. The market price shows a sign to turn upward though which had gradually lowered for 2009. Some dealers are trying to raise the reselling price.

H-beam market price decreased by total 27,000 yen per tonne during 2009 with low demand. The price temporarily rebounded to 70,000 yen late August 2009 thanks to speculative demand but turned downward again in September. The price kept gradual downtrend in early January.

Electric furnace steel makers are expected to raise H-beam selling price when ferrous scrap market price turned strong. A dealer source said the market price seems to have swung upward after long holidays for January 9th-11th because electric furnaces clearly show a willing to raise their selling price.

Users’ orders keep low to dealers. Many dealers forecast the order volume doesn’t recover for a while. However, another dealer source said the orders may increase if H-beam makers announce the hike and the market price represents a sign to bottom out

Local dealers’ H-beam inventory totaled 57,100 tonnes at the end of December 2009 around Osaka, slightly increasing from a month earlier. The inventory is leveling off. Some dealers aggressively adjust the inventory while other dealers increase the orders to makers with an expectation H-beam market price may rise.