Japan Makers to Hike Angle, Channel

Electric furnace steel makers are expected to increase the selling price of angle and channel for September order to cover higher cost for ferrous scrap and subsidiary materials when the distributors’ inventory is getting to normal level. A trading firm source said the makers could increase the price by 2,000-3,000 yen per tonne after integrated steel makers and electric furnaces hiked H-beam price by 3,000 yen for August order. Ferrous scrap market price rebounded in June after the temporally drop in May. Concrete reinforcing steel bar makers increased the selling price for July and August order to cover the higher cost. Osaka based Kyoei Steel announced the 1,000 yen per tonne of hike for September order. Domestic rebar makers are still willing to hike the selling price. Osaka based Shinkansai Steel increased the selling price of flat bar and square bar by 3,000 yen per tonne for distributors for August order. Wakayama based Sumikin Steel & Shapes increased the H-beam selling price by 3,000 yen per tonne for August order. Angle and channel makers also considered hike for August order. However, with higher distributors’ stock depending on the areas, they couldn’t hike the selling price. The makers see the distributors’ stock could be normal level in the month even for the slump areas. They try to cover higher cost for ferrous scrap, ferroalloy, electrode and other materials through the hike. A trading firm source said the higher scrap price would lift the steel price by electric furnaces.