Lower Angle, Channel Price in Tokyo

Market price of angle and channel steel is around 85,000 yen for equal angle with 6 millimeters thick and 50 mm width and 90,000 yen for channel with 5 mm thick, 50 by 100 mm width with around Tokyo. Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, reduced the selling price of channel for April contracts. The firm’s channel price is lower than other makers by 20,000 yen. Users are expected to negotiate the purchase price of steel products with reference to Tokyo Steel’s selling price. The market would keep downward trend.

Dealers’ inventory decreased slightly from last month. Users’ order reduced in March from February. Dealers’ shipment volume decreased by about 10% in March from last month. Dealers’ acceptance volume decreased by 10%, too, when they restricted the order to makers due to anticipation of a fall. Some dealers completed the inventory adjustment but many dealers are decreasing the selling price to secure orders.

Ferrous scrap market price is continuing to decrease. Steel demand is decreasing when building construction projects are cancelled or held off. The point is whether Osaka Steel or JFE Bars & Shapes decrease the selling price or not for April contracts though both firms have kept the selling price from January orders.