Weak Angle, Channel Price in Tokyo

Equal angle steel market price is weak at 74,000-75,000 yen per tonne for product with 6 millimeters thick and 50 mm width around Tokyo. Channel steel price is 80,000-81,000 yen for product with 5 mm thick, 50 by 100 mm width. The price is likely to keep the level despite of higher cost price pressure. The dealers said angle is overstock in the dealers while they have some stock out sizes for channel. The supply decreases when the makers try to reduce the shipment for distributors to improve the supply balance. The dealers said the sales from the inventory kept low in June as May. The buyers are calm even after the start of new building standard law in late June. The building demand is slow for small sized building, which is the main target for the dealers, while the demand is firm for large scale building. The dealers hope they could increase the reselling price by 2,000-3,000 yen per tonne when their inventory materials price increased by averaged 3,000 yen after the makers hike. However, they apparently try to find the timing to increase reselling price while they reduce the inventory level and wait demand recovery.