Tokyo Steel’s Announcement Impacts H-beam and Rebar Market

H-beam market price is lowering by about 2,000 yen to 70,000-71,000 yen per tonne around Tokyo this week. H-beam users, such as fabricators, are offering distributors the price cut by 3,000 yen after Tokyo Steel Manufacturing’s announcement to lower its selling price of long products by 3,000 yen for July shipment. Distributors turned into weak selling stances and some of them approve the trading at below 70,000 yen. The market price is likely to maintain gradually downward.

Ferrous scrap purchasing price by local electric furnace steel makers is surging. Meanwhile, H-beam demand stays as low as in May. H-beam users strongly request price cut under low demand. Market players eye JFE Steel’s price policy as the next indicator.

Around Osaka, concrete reinforcing steel bar market price lowered by 2,000 yen to around 58,000 yen per tonne this week for base size products directly delivered from makers to users. The market price represented the first decrease since late April and became below 60,000 yen for the first time since January 2007, impacted by Tokyo Steel Manufacturing’s price down announcement.

Rebar demand maintains low in June. General contractors are strongly requesting price cut against rebar distributors. Some distributors have already approved price down to secure contract volume and managing fund. The market price is expected to keep flat with potential decline.