H-Beam Expected to Hit Bottom Soon in Osaka

H-beam dealers around Osaka expect the market price would hit bottom soon when Sumikin Steel & Shapes left the price unchanged for May production as Tokyo Steel Manufacturing.

The market price decreased by total 58,000 yen per tonne since late 2008 under the series of price cut by the makers. Some dealers expected lower price and sell at lower price than makers’ selling price. The market price showed no sign to hit bottom while some dealers were cautious for too low price.

However, the dealers changed the mind after major makers announced the price freeze. A dealer said some dealers would increase the reselling price from too low price based on potential makers additional price cut to 60,000 yen per tonne level. Other dealer said the market price cold hit bottom at 65,000 yen and with bottom price, the users could increase the purchase volume.

Many dealers, however, the market price couldn’t recover 70,000 yen per tonne level in short term. Some dealers concern the market price could decrease more depending on the demand.