Japan Steel Makers and Dealers Keep Steel Market Price for Building Material

Japanese steel makers and dealers will keep steel market price for building construction around Tokyo against decreased ferrous scrap material and hesitant buying of general contractors. Tokyo Steel Manufacturing decreased selling price of H-beam or deformed bar by 10,000-12,000 yen per tonne fro the contract in September. However, other makers didn’t decreased selling price. The market price mood is see-and-wait situation. Ferrous scrap price decreased by over 30,000 yen per tonne or over 40% from the last half of July. Each general contractors hold off the buying when they anticipate the market price falls in near future. Each steel maker makes a forecast ferrous scrap price downslide is temporariness. Scheduled business meeting was stopped between major rebar makers and general contractors. Steel construction floor area decreased by 4.5% in July from a year earlier in Japan. Reinforced concrete structure floor area decreased by 19.3%. The demand for building construction is expected to decrease in near future.Order volume of rebar is seemed to decrease to the first half of 200,000 tonnes in August to makers from around 300,000 tonnes in common month. H-beam award volume of some dealer decreased by about 30% in August from July. Dealers can’t decrease selling price when they have the inventory of higher price products.