Section Steels Price Continues Decline in Osaka

Section steels market price decreased to 75,000 yen per tonne for equal angle steel and to 78,000 yen for channel steel around Osaka, which declined by 8,000 yen compared with the recent peak. The price decreased additionally after the drop in late June when some dealers reduced the reselling price due to the demand decreases.

The section steels demand remains low after the speculative buying in spring and the users reduces the purchase volume expecting the price would decrease more. The dealers’ inventory has been increasing after April due to the decrease in the shipment and the increase in the purchase volume. The inventory is excess against the shipment. The inventory seems to decrease from August at the earliest case due to the order backlog, according to one dealer source.

The dealers are concerned the market price decline while the major makers left the selling price unchanged in July. The dealers’ inventory unit price increases with higher priced arrivals.