Firm H-Beam Price in Tokyo

H-beam market price is firm at around 115,000 yen per tonne for 200 by 100 millimeters width around Tokyo. The market regains higher price expectation after Tokyo Steel Manufacturing announced 12,000 yen hike on Monday, which was more than expected by the market. The market price is likely to increase more when some dealers offer 120,000 yen level and the dealers expect up to 127,000 yen level of reselling price to cover the higher cost price. The dealers’ shipment apparently decreases by 15-20% from March after speculative demand in March while the material arrivals from makers is flat. Their inventory level increases. However, the dealers try to seek higher reselling price level when they expect additional hike by the makers. The dealers are reluctant to build the inventory when the demand gets slower after the buyers built inventory in March and the inventory cost increases with higher cost price. The dealers select the order to accept preferring higher price and better delivery timing while some of them experience opportunity loss due to thinner inventory for some sizes.