Shape Steel Market Price Downturns in Tokyo

Shape steel market price downturned around Tokyo after 5 months. Equal angle market price decreased by 3,000 yen to 80,000 yen per tonne for base size products at dealers’ sites without freight. The price had surged by 13,000 yen since February but some dealers lowered the reselling price under low shipment. Channel market price is presently 82,000-83,000 yen per tonne, which is likely to edge downward reflecting Tokyo Steel’s price down by 7,000 yen.

Dealers’ sales volume per day seems lower in June than in May. One factor is that speculative demand increased for March-April. In addition, shape steel users currently turned to purchase the volume as much as immediate usage when market price is weakening.

Market players focus on major shape steel makers’ price announcement for July contracts, Osaka Steel and JFE Bars & Shapes. The market price would strengthen the weak trend if these makers reduce the selling price to follow Tokyo Steel. Some dealers comment steel makers should adjust supply by order receipt regulation.

Dealers’ profitability would worsen by the market price downturn. Dealers hasn’t passed cost price upsurge on reselling price fully yet. Dealers may post monthly loss for July with high price inventories despite of weak market price. Dealers’ shape steel inventory is slightly surplus due to low shipment.