Steel Frame Processing Charge Keeps Flat at 130,000-150,000 Yen/t in Japan

Steel frame processing charge maintains flat at 130,000-150,000 yen per tonne for a structure of 100-500 tonnes around Tokyo. Fabricators are raising operation ratio and low-price order acceptance seems decreasing. There are spot orders for small and middle size buildings in disaster areas of the Great East Japan Earthquake.

The demand is slightly recovering for building construction. Some fabricators continue low-price order acceptance to sustain operations. Breakeven point is estimated at around 10,000 yen per tonne. Some fabricators are in full operation since there are large size building constructions around Tokyo steadily.

Around Nagoya, steel frame processing charge keeps flat at 145,000-150,000 yen per tonne. The demand is increasing for small-middle size buildings and small-middle class fabricators are in full operation. Small-middle class fabricators have order backlogs for two months. Large class fabricators hold order backlogs until march-April 2012.

Around Osaka, steel frame processing charge maintains flat at 120,000-140,000 yen per tonne. The demand seems increasing in autumn. One fabricator source said they can receive orders but it is unclear whether current demand situation continues or not. General contractors are requesting price cut to fabricators severely.