H-beam market price is weak at 70,000 yen per tonne for 200 by 100 millimeters width products around Tokyo. The market is impacted by 5,000 yen price cut by Tokyo Steel Manufacturing for November order. The dealers try to watch Nippon Steel’s price move while the buyers seek lower price to the dealers.
The dealers’ inventory as of mid-October is in line with the level at end of September. The dealers’ shipment is around 5% lower than September level when building activity for mid- and small-sized building is very slow despite of several major redevelopment projects. The arrivals from the makers to the dealers decrease when the dealers reduce the order to the makers. Some steel makers revise the production plan eyeing wider production cut under slow demand. However, the oversupply condition is likely to continue. The dealers could reduce the reselling price while they try to keep the price level as long as possible when with current market price, the dealers cannot make money even with 65,000 yen per tonne of Tokyo Steel’s selling price.Japan Steel Scrap Composite Prices (Sangyo Press)
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