Structural steel bar market price is weak around Tokyo. The market price is around 120,000 yen per tonne for carbon steel bar for machine structural use. The shipment recovers to 70-80% of the peak for automotive related industry while the demand for construction machinery is still weak. The total domestic demand is still around 50% of the peak while some makers get orders from China. The price is likely to keep weak due to slow demand while the price recently shows sign to hit bottom.
The demand is still weak especially in domestic market while the demand is firm in China and Southeast Asia. One medium sized dealer said the demand is relative well for automobile and severely low for other applications. The dealers’ shipment does not increase when the orders are small and hard to process, the source said. The dealers’ inventory decreased for 10 months in a row through October, according to a group of special steel dealers. The shipment increased for 2 months in a row. The shipment in October was about 60% of the high level in 2008. The shipment is increasing since February 2009. However, one major dealer source estimates that the shipment would stay the level in October 2009.Japan Steel Scrap Composite Prices (Sangyo Press)
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