Structural steel market price is flat at around 145,000 yen per tonne for carbon steel for machine structural use and at around 170,000 yen for chromium and molybdenum steel around Tokyo. The supply is tight when the dealers report they have some stock out sizes. The market interests try to find the next trend when the price move could change with potential rebound for ferrous scrap market. One dealer said the price is supported by tight supply when the dealers’ inventory have some stock out size especially for products with larger diameter and the makers delivery keeps delaying. The inventory held by trading firms and dealers decreased by 2.7% to 249,965 tonnes at end of July from June, which was lowest level in 5 years, according to Special Steel Association of Japan. Daido Steel announced 10,000 yen per tonne price increase for October shipment. However, some dealers see the hike couldn’t be accepted by the market due to much lower ferrous scrap market. A distributor said the dealers face resistance by the buyers when the makers argue they are forced to increase the selling price due to higher scrap cost despite of the plunge of the scrap price.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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