Shapes Price Turns into Rise in Tokyo

Market price of shapes turned into upward for the first time around Tokyo. The dealers increase the reselling price in the week to pass higher cost price by the makers. The higher offer is accepted by the market. The price is likely to increase as the lower price shifts to the higher price.

The H-beam price is 68,000-70,000 yen per tonne and equal angle price is 70,000-71,000 yen around Tokyo. The dealers increased the offer to 70,000 yen for H-beam and 73,000 yen for equal angle in the week. The buyers accept certain hike after the dealers announced the hike from last week while some buyers still resisted to the higher price.

A trading firm source said they try to increase the reselling price even with the slow demand. Tokyo Steel Manufacturing increased the selling price by 5,000 yen to 70,000 yen per tonne for H-beam, which is the same level as the dealers’ reselling price. The dealers try to pass the higher cost price to secure the profitability. The dealers plan to increase the reselling price more even after the buyers accept the current higher offer.

Angle and channel makers increased the selling price by 3,000 yen per tonne for August order. The makers increased the price by another 5,000 yen for September order. The dealers try to pass the 5,000 yen higher cost price in September.

The electric furnace steel makers’ ferrous scrap purchase price exceeded 30,000 yen per tonne. The makers try to find the chance to increase the steel selling price more to cover higher raw materials cost. The dealers try to increase the reselling price along with the makers’ hike. However, the users are resisting to the higher price under the very slow demand.