H-beam market price is weak at around 68,000-70,000 yen per tonne for 200 by 100 millimeters width around Tokyo. Capital expenditure is partially recovering at some major manufacturing companies but dealers’ shipment keeps low. Some dealers are offering the reselling price as low as makers’ selling price.
Dealers’ inventory keeps flat level from last month. On the other hand, dealers’ shipment maintains as low as last month. Some long size products are short but dealers’ inventory adjustment hasn’t completed yet. Dealers are trying to reduce the inventory when they forecast award volume would keep low. They continue to reduce the orders to H-beam makers. H-beam market price seems to hit the bottom when electric furnaces’ ferrous scrap purchasing price is rising. Meanwhile, dealers’ price competition continues to secure trade volume. Some dealers are selling at about 66,000 yen per tonne. Buyers’ price requirement is lower than dealers’ proposal. It is hard for dealers to keep the reselling price at 70,000 yen per tonne.Japan Steel Scrap Composite Prices (Sangyo Press)
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