Beam Price to Decline from 90,000 Y/T around Tokyo

H-beam market price is weak at around 95,000 yen per tonne for 200 millimeter width by 100 millimeter heights around Tokyo. The price is likely to decline when the customers expect the further price cut. The price would decline more while some transaction price is around 90,000 yen per tonne.

The supply and demand balance get loose when dealers’ inventory increased by 3.9% at the end of December from a previous month and the shipping ratio against inventory is about 4 months, according to the group of dealers which sell Nippon Steel’s H-beam. Dealers’ purchasing volume decreased by 15.5% in December from November. But their shipment volume decreased by 8.6%. Nippon Steel stopped accepting the order receipt for 3 months in a row. Therefore, dealers’ inventory would decrease by the end of January.

Electric steelmakers reduced the beam price but ferrous scrap is still at lower level, less than 20,000 yen per tonne. The demand is likely to drop due to the cancellation or postpone of building construction.

Nippon Steel leaved the beam price at 120,000 yen per tonne for January contract but many market sources forecast the price decline. Market notices the pricing by Tokyo Steel Manufacturing, planed on 19 January.