Angle, Channel Market Price Downs by 3,000-5,000 yen/t, Tokyo

Angle and channel steel market price declined by 3,000-5,000 yen per tonne around Tokyo this week. The market price is around 113,000-115,000 yen per tonne for equal angle steel and around 118,000-120,000 yen for channel steel. Some dealers sell angles at the price as cheap as 105,000 yen. The price band is widening to reflect different transaction stances of users and dealers. The market price downed by 8,000-10,000 yen from the peak while the makers lowered their selling price by 20,000 yen. Dealers would reduce the reselling price more when the demand is weakening.

The dealers are receiving the delivery with around 116,000 yen per tonne from the makers. The averaged price of dealers’ inventories exceeded 100,000 yen. Cheaper products will be shipped from the makers soon. However, dealers’ inventory turnover is slow when their shipment is stagnant. Dealers’ profitability would temporarily become worse. Some dealers offer the reselling price cheaper by 10,000 yen than the market medium price to improve turnover.

Dealers’ reselling price is expected to follow the makers’ price cut by 20,000 yen sooner or later. However, the market price seems to decline more. Ferrous scrap price plunged by 60,000 yen per tonne from the peak while the steel makers are widening output cut actions. Ferrous scrap price is unlikely to rebound significantly in a short term and steel makers would reflect lower material price on their product prices. The market price should maintain weak.