Firm Cold Finished Bar Price in Tokyo

Cold finished steel bar market price is firm at 140,000 yen per tonne for product with 14 millimeters diameter and 145,000 yen for product with 50 mm diameter around Tokyo. The makers and dealers try to pass the higher cost price on the selling price. Some buyers accept the 5,000 yen per tonne hike. The price is likely to keep increasing when the supply side players try to increase the price. The cold finished bar makers started the aggressive price hike negotiation with buyers after the news that Nippon Steel got higher price for special steel bar and wire from Toyota Motor. The buyers including dealers and automobile parts makers started to accept hike. However, the demand is flat compared with last year and the buyers show no sign to build inventory before the hike. A dealer source said the shipment was 1-2% higher in June than a year earlier. The cold finished bar makers try to pass the higher cost price immediately when they have limited materials inventory to avoid price change risk.