Steel Frame Market Price Weakens in Japan

Steel frame market price is weak around Tokyo, Osaka and Nagoya. Some fabricators seem to receive orders at even cheaper price. The market price is around 140,000-150,000 yen per tonne for steel-structure buildings using steels at 100-500 tonnes in Tokyo. The market price is 130,000-140,000 yen per tonne around Osaka and 120,000-135,000 yen per tonne around Nagoya for small-size steel-structure buildings using H-beams and columns.

Fabricators are suffered from low order receipts. Around Tokyo, the construction demand is halving compared with a year earlier except for some large construction projects.

Fabricators’ competition is very severe when the market has shrunk. The market price range is widening and some fabricators seem to receive orders at the level below their breakeven points. Competition is also severe among general contractors, the ordering party for fabricators. General contractors request price down against fabricators.

Steel frame demand is expected to maintain low for a while. The market price would keep weak. Meanwhile, market price shows a sign to rebound for some steel materials such as H-beam. Fabricators aim to sustain the price level along this mood.