Japan Shape Steel Dealers to Launch Price Hike in January

Chuoh Kozai, Japanese major steel dealer, will raise the reselling price of equal angle by 5,000 yen per tonne to 80,000 yen in January to reflect steel makers’ wide-range price hike. The market prices of angle and channel seem to rise rapidly in early January after major steel dealers’ price hike.

Miyata Kozai and Chiyoda Kozai, Japanese major steel dealers, also plan to raise the reselling price of shape steels on and after January 5th. The current reselling prices are lower than their operative costs while their inventories are decreasing. Osaka Steel and JFE Bards & Shapes, major angle and channel steel makers around Osaka, announced the price hike by 5,000 yen for December contracts and by 8,000 yen for January contracts.

The market price is currently 75,000 yen for equal angle and 77,000-78,000 yen for channel. The market prices increased by 3,000 yen from the recent bottom. Steel dealers can’t cover higher costs fully if they succeed in the price hike by 5,000 yen.

Win First, the joint sales company of thin rebar between Sanko Seiko and Mukoyama Kojo, announced on Friday the company raises the selling price to above 65,000 yen per tonne for January contracts when ferrous scrap and energy costs are rising.

Win First’s order receipt increased by 50% in December from a year earlier and the shipment volume increased by 14%. Orders have increased from small dealers, middle-class and local general contractors. Mr. Shiro Suzuki, president of Sanko Seiko, said major general contractors are expected to increase rebar orders in early January.

H-beam market price continued upsurge to 70,000 yen per tonne around Osaka. Dealers are raising the reselling price to follow steel makers’ price hike. The market price is expected to maintain strong tone in early January.

The demand maintains firm since autumn. Market inventories are shortening for some sizes. The supply keeps tight. A dealer source said wholesalers seem to minimize H-beam procurement volume despite of low inventories.