Column Price to Decline from 148,000 yen/T in Tokyo

Large diameter square pipe or steel column market price is expected to decrease from 148,000 yen per tonne at the dealers’ site for cut and beveling processed product with 300 by 300 millimeter width and 12 mm thickness around Tokyo. Some transaction price is as low as 145,000 yen per tonne due to the downturn pressure from the market.

The dealers’ inventory at the end of December remained at the same level as previous month when the shipment decreased by around 10% due to postpone or cancellation increase of building plans while the dealers reduced the procurement by about 10%. The inventory is overstock for the demand level when the buyers remain the purchase at lower level due to the demand softening and expectation for price decrease.

Major column maker, Nippon Steel & Sumikin Metal Products announced the price hike to pass higher cost price for the mother plate. But the firm virtually gives up the hike when the dealers oppose the hike strongly under the slower demand.

Some dealers cannot charge the processing and the freight on the buyers under the buyers’ market. The market price is expected to decrease more due to such pressure for lower price.