H-Beam Price Hits Bottom in Osaka

H-beam market price is hitting bottom around Osaka after downward trend since late January. The price could keep the level when the dealers try to avoid lower priced transaction.

The price is around 67,000 yen per tonne for base size. The price started to decrease in January when the makers reduced the selling price under lower ferrous scrap cost. The market price decreased by 4,000 yen from the beginning of the year. The dealers reduced the reselling price when the buyers pressed for lower price under slow demand.

Local electric furnace steel makers increased the selling price for projects when scrap cost rebounded in February. The dealers expect the makers would increase the selling price for the dealers in April. A dealer said the dealers have no room for lower price to keep the business. Some of the dealers try to improve the reselling price and they can avoid low priced transaction recently.

The dealers try to increase the reselling price before the makers’ price hike in April. However, the buyers still resist the attempt under slow demand. A dealer said the buyers don’t care potential price hike by the makers when the demand is still slow.