H-beam Price Keeps Flat in Tokyo

H-beam market price is at around 75,000 yen per tonne at dealers’ sites without freight in Tokyo. Shipment is still stagnant even after long holiday period in last week. Demand recovery seems to take a while. The market price would keep flat under low shipment. H-beam inventory turned to the decrease at dealers thanks to makers’ output reduction. Dealers are currently dealing with small lot orders for immediate delivery. Dealers can keep the price level as a result. Some dealers are selling H-beam at cheaper prices under stagnant demand. However, sales volume would not increase even with cheaper prices. Around Osaka, H-shaped steel market price is becoming at above 70,000 yen per tonne. Dealers expect to increase the demand for building construction, is planning to avoid low price trade. There is possible that the increasing price mood around Osaka spread in Tokyo market. H-beam inventory in Osaka area decreased by 6% to 48,300 tonnes at distributors dealing with Nippon Steel’s products at the end of April from a month earlier. Inventory against shipment became to 1.58 months. Daily sales volume increased by 230 tonnes to 1,530 tonnes during 20 business days in April from the previous month. Inventory is expected to continue decreasing after the peak at 50,000 tonnes at the end of March 2006. Inventory to shipment ratio would also improve to the level in the last half of 2005. H-beam makers including integrated steel makers and Sumikin Steel & Shapes continue output reduction in order to control supply volume. Orders from general contractors seem to become active in late May. Dealers are likely to raise their selling prices to improve their profits and the market price could turn into strong tone toward summer.