Shape Steel Market Price Keeps Downward, Tokyo

Market price of shape steels for constructions maintains downward around Tokyo, mainly for roll forming products. Downtrend continues for light-weight shapes though price decline relatively slowed for common-type shapes. Wholesalers are in severe price competition with low demand. The market price is likely to keep downward for a while.

The market price decreased by 1,000 yen to 70,000-71,000 yen per tonne for angles from last week, the level as low as January-February 2007. Channel market price also declined by 1,000 yen to 75,000-76,000 yen per tonne from last week.

As to roll forming products, light-weight H-beam market price lowered by 5,000 yen to 125,000 yen per tonne while light-weight C-beam market price declined by 2,000 yen to 93,000 yen per tonne.

Private construction projects have been frequently postponed or canceled since autumn 2008. Market distributors are in severe price competition with demand shrinkage for shape steels. A dealer source said they cannot refrain from price cut to secure sales volume. The market price seems to keep downward as long as the demand stays stagnant.

As to common-type shapes, some of major wholesalers are decreasing their reselling price to the level near makers’ price. Market price is pulled down by this movement. As to light-weight H-beam, steel makers lowered the selling price by 15,000 yen per tonne effective for June contracts. Wholesalers reflected the makers’ price down not to widen price gap between normal H-beam and light-weight H-beam. Additionally the customers’ price cut offers are very strong.