Weak H-beam Price in Tokyo

H-beam market price would decrease from 79,000 yen per tonne around Tokyo. The dealers are likely to reduce the transaction price to get order under the buyers’ market with slower demand. The market price could hit bottom depending on Tokyo Steel Manufacturing’s price move on July 19.

The arrival from the makers to the dealers around Tokyo would decrease when the dealers’ order to be delivered by 33.0% to 6,808 tonnes in June from May, according to the dealers’ group. The inventory would peak at the end of June when the shipment is increasing.

However, the users seek lower price under excess inventory at the dealers and some dealers’ transaction price is around 75,000 yen per tonne. The dealers try to reduce the inventory and integrated steel makers including Nippon Steel plan to reduce the supply more for the dealers for July-September.

The dealers try to find timing to improve the profitability while their purchase price from domestic integrated steel makers is higher than the reselling price. The dealers also lose money on sales of electric furnace steel makers’ products.