Flat Bar, Square Bar Price Hit Record High in Tokyo

Market price of steel flat bar and square bar hit record high around Tokyo. The price reached 120,000 yen per tonne for flat bar and 130,000 yen for square bar in the week renewing the record for the first time in 34 years. The price could increase more when the dealers try to pass higher cost price after the wide hike by the largest maker of Oji Steel for April. Oji Steel increased the selling price by total 25,000 yen per tonne including 8,000 yen for February and 17,000 yen for April to cover higher cost for ferrous scrap, ferroalloy and other materials and energy. With the wide hike, the market price jumped. The dealers try to realize 125,000 yen level for flat bar to secure the profitability. The demand is expected to be flat for the year as last year. The buyers increased the purchase volume to build inventory with expectation for higher price. However, they secured certain inventory and the speculative demand was gone by mid-March. A dealer source said the sales decreased by around 10% in March from February and the users’ purchase apparently gets normal level. The dealers are cautious for potential slower order from the buyers after the boom.