Weakening H-Beam Price in Tokyo

H-beam market price shows apparent downward around Tokyo. The dealers report the high price of 130,000 yen per tonne transaction decreases while the low price of 122,000-123,000 yen deals increase. The local supply balance could keep balanced when integrated steel makers and the subsidiaries, which have major share in the local dealers’ market, keep the price and output reduction. However, major drop of ferrous scrap price and Tokyo Steel Manufacturing’s price down pressure on the market. The dealers’ selling price is still around 127,000 yen per tonne around Tokyo. The market interests expect the price level wouldn’t decrease widely when Nippon Steel, JFE Steel and other makers try to adjust the output to lower demand level. But the major scrap price drop impacts the mood. The dealers could reduce the reselling price by 3,000-4,000 yen per tonne more despite of the high priced inventory. The dealers keep offering 130,000 yen but they are forced to compromise to get order. The dealers and buyers share the view that the price could decrease, not increase with 30,000 yen lower scrap price from the peak.