H-beam price around Tokyo to decrease by over 1,000 yen per tonne

H-beam market price around Tokyo is likely to decline from 126,000 yen per tonne when Tokyo Steel Manufacturing reduced the selling price by 5,000 yen per tonne for the contract with users from 6 October. Dealers want to keep the selling price at 127,000-128,000 yen per tonne but some dealers are selling at around 124,000-125,000 yen per tonne.

Many sources pointed out the dealers’ shipment appear to decrease in October due to weak demand after September. Some dealer sources said the demand is seemed to recover within this year. On the other hand, integrated steel maker source said the demand would increase in November when general contractors control the purchase volume, which they expect the steel products price declines.

The floor area of steel structure building decreased by only around 10% in August compared with 5 years earlier, except August 2007.

Dealers purchase H-beam at high price around 120,000 yen per tonne and try to maintain the current price to prevent the negative earnings. However, some dealers sell at lower price under downward mood is increasing. When the mood grows, the market could plunge from increase of realization sales.

Section steels market price around Osaka decreased by 2,000 yen per tonne from last week. Price for base size is 118,000 yen per tonne for equal-angle steel and 123,000 yen per tonne for channel steel. Market sources forecast that makers could reduce the price and try to decrease the stock.