Structural steel price is weakening around Tokyo. Market price is 127,000-130,000 yen per tonne for carbon steel bar for machine structural use and about 160,000 yen per tonne for chrome molybdenum steel bar. The monthly shipment is about 60% down from the same month of last year while the inventory, which is decreasing from the peak in March, remains high. Structural steel demand is impacted by significant machine output cut.
Market price does not bottom out when the makers reduced the price for June shipment. The price gap between higher price and lower price in market is widening. Market price could rise due to the increase of ferrous scrap price. However, current demand remains low. A major dealer source says that the price trend depends on not supply and demand balance but dealers’ policy, adding that the firm hopes not to hold any high-price inventory. Spot shipment would remain low while the shipment for contract users has recovered to about 60% of last year, according to a trade firm source.Japan Steel Scrap Composite Prices (Sangyo Press)
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