Osaka Steel Keeps Shapes Price, Yamato Steel Cuts I-Beam, Channel

Osaka Steel announced on Tuesday the firm leaves selling price of shapes unchanged for November order. The firm expects the price can be accepted by the market under improving demand condition and higher electricity and ferrous scrap cost while Tokyo Steel Manufacturing reduced the price by 5,000 yen per tonne. Yamato Steel decided to reduce selling price by 3,000 yen for H-beam for November 2 shipment and by 5,000 yen for I-beam base size and channel for November order. The makers’ price moves send mixed sign for the market.

Osaka Steel keeps low level production to meet the demand level. Osaka Steel sees ferrous scrap price is weak due to worldwide economy uncertainty and lowering Eastern Asian currencies but the firm expects steel market could rebound due to high level iron ore and coal cost. The firm tries to keep the selling price when the profitability is severe under increasing electricity cost and higher cost for production cut. The firm also sees steel demand improves and dealers’ inventory adjustment progresses.

Yamato Steel left the price unchanged for other I-beam sizes than base size. The firm reduced the H-beam price marginally under lower scrap cost while Tokyo Steel cut the price by 5,000 yen per tonne. Yamato Steel also plans low level production to the current demand level.