H-beam Market Price Continues Downward, Tokyo

H-beam market price is weak at 80,000 yen per tonne for base size products at dealers’ site without freight around Tokyo. The market bottom is unforeseeable after Tokyo Steel Manufacturing announced to decrease its H-beam selling price by 5,000 yen per tonne for April contracts. H-beam users strongly offer price cut against distributors. The market price is expected to continue downward.

H-beam shipment by members of Tokiwa-kai, which is a group of distributors dealing Nippon Steel’s products, represented 27.8% year-on-year decline in February. Their shipment was likely to maintain the same level in March. The demand stays low. General contractors seem to have few construction plans to consume H-beam by large lots.

Tokyo Steel Manufacturing set its H-beam selling price at 68,000 yen per tonne and other Japanese electric furnace steel makers followed the level. On the other hand, Japanese integrated steel makers, including Nippon Steel, keep their H-beam selling price higher by about 15,000 yen than electric furnaces’ price. The current market price is almost as same as integrated steels’ selling price.

H-beam distributors around Tokyo, those who deal mainly integrated steels’ products, are forced to set the reselling price higher by about 10,000 yen than dealers in West Japan. Consequently, cheaper H-beams continue to flow into Tokyo area from other regions and impact the market price.

The market price is likely to maintain downward when ferrous scrap is as low as 17,000 yen per tonne at electric furnaces’ purchasing price. Market players eye next price announcement by Nippon Steel on 8 April and by Tokyo Steel Manufacturing in mid April.