Welded Steel Tube Makers Cut Price by 5,000Y/T Again

Some welded steel tube makers reduced the price of electric resistance welded tubes for structure by 5,000 yen per tonne for April shipment, according to the dealer source. A source said the makers reduced the price by 5,000 yen in March too. The market price of carbon steel tubes for general structural purposes and middle-sized square tube are declining. The makers reduce the price while dealers’ profitability gets worse.

The makers plan to keep the 40-50% cut for April-June from same period a year ago, which is as same as in a previous quarter to meet the economy downturn.

The dealers’ selling price is decreasing under the demand stagnancy. The market price of structural steel tube is around 125,000 yen per tonne for base size while the price of middle-sized square is around 115,000 yen for base size and around 124,000 yen for colored products.

The makers kept the price level until the beginning of 2009. However, the dealers increased the pressure for price cut to the makers in order to keep profitability and the makers are forced to reduce the price.