Shaped Steel Market Price Rises around Tokyo

Shaped steel market price is rising around Tokyo. The price increased by 2,000 yen per tonne for H-beam and by 5,000 yen for equal angle steel in January. Dealers are trying to raise the reselling prices to reflect steel makers’ price hike. In addition, dealers’ inventory is becoming short. The market price is likely to keep uptrend for a while.

Market inventory of angle and channel steels is tightening mainly for base sizes, according to a dealer. Steel makers have reduced supply volume in balance with low orders from steel users.

H-beam market price is around 75,000 yen per tonne for base size. Equal angle market price is around 80,000 yen and channel steel price is 82,000-83,000 yen. Dealers’ price hike penetrated in the market. Dealers aim additional price hike to cover even high cost price.

Steel market shows uptrend when ferrous scrap price maintains strong tone. Meanwhile, steel users are negative to approve dealers’ price hike. Steel dealers are cautious for timing to launch additional price hike.

Around Osaka, shape steel dealers feel regional demand maintains severe for building materials. In 2010, H-beam shipment by local Tokiwakai members, those who trade mainly Nippon Steel’s products, increased to 33,400 tonnes in February due to speculative demand while decreased to 18,700 tonnes in June. The regional demand stayed stagnant in and after May.

In the third and fourth quarters, local demand upturned. However, this month, H-beam dealers analyze the most orders seemed speculative demand and the customers completed restocking orders.