Weak Structural Pipe Price in Tokyo

Market price of carbon steel tubes for general structural purposes or STK 400 grade is weak at around 120,000 yen per tonne for product with 48.6 millimeters diameter and 2.3 mm thick around Tokyo. The price is likely to keep weak due to very slow demand.

The market price decreased by 5,000 yen per tonne in a week in the series of decrease since March. The market expects lower price when lower annual iron ore price could reduce the material of hot rolled coil price and steel pipe price more.

The dealers’ shipment is very slow in May due to slump in construction activity. The dealers expect the demand could keep the low level through September. Welded pipe makers reduce the production by 50-60% in April-June from same period of 2008. However, the supply is dull due to the slow demand. The pipe dealers’ profitability gets worse due to lower price and shipment.