Weak H-beam Price around Tokyo

H-beam market price is weak at 123,000 yen per tonne for base size with 200 by 100 millimeters width around Tokyo. The anticipation of a fall became clear when Tokyo Steel Manufacturing decreased the selling price by 35,000 yen per tonne. Some dealers sell H-beam at below 120,000 yen per tonne. The market price is expected to more drop in a short term.

Dealers’ inventory is increasing from last month around Tokyo. H-beam arrival is decreasing since dealers reduced the orders to adjust the inventory. Their shipping volume is decreasing by around 5% from last month.

There is price gap by around 40,000 yen per tonne among integrated steel makers and electric furnace steel makers. Dealers would like to keep the reselling price at over 125,000 yen per tonne when they purchases high price products made by integrated steels.

However, they are facing difficulty to keep high reselling price. Some dealers sell H-beam at 115,000-120,000 yen per tonne to minimize inventory. The market price is expected to drop when the cheaper products at around 115,000 yen are brought in Tokyo from Nagoya and Osaka.