Weak Structural Steel Bar Price in Tokyo

Structural steel bar market price is weak at around 125,000-130,000 yen per tonne for carbon steel for machine structural use and around 160,000 yen for chrome-molybdenum alloy grade around Tokyo. The price could keep weak under overstock adjustment when the dealers are still middle of the adjustment while the demand improves slightly for automobile.

The dealers’ shipment is still very low. A dealer said the demand couldn’t recover in the year especially for construction machinery while the automobile demand is improving gradually. Domestic construction machinery makers are still middle of major production cut.

The dealers’ inventory decreased from the peak in February but the decrease pace is slow due to very low shipment level. The adjustment could take more months under slow demand. The dealers expect higher ferrous scrap market price could support the steel bar market level.