Nippon Steel Increases H-beam Price by 5,000 Yen/t in May

Nippon Steel announced H-beam price hike by 5,000 yen per tonne for dealers effective for May contracts. The firm raises the price for 4 consecutive months, increasing by total 28,000 yen. The firm decided the latest hike to continue stable H-beam supply when raw material prices are rising. Nippon Steel may raise the selling price more in response to the supply and demand balance or raw material price.

Nippon Steel keeps H-beam output reduction by over 70% for dealers compared with the ordinary level. Japanese distributors’ H-beam inventory held by members of Tokiwa-kai, which is a group of distributors dealing Nippon Steel’s products, decreased by 9.9% to 179,900 tonnes at the end of March from February, according to Nippon Steel. Deales’ stock is shortening in April. Dealers’ inventory ratio was at the decent level of 1.74 months. Nippon Steel aims to maintain the current stock level.

Nippon Steel’ H-beam sales price will become higher by over 5,000 yen than Tokyo Steel’s sales price of 79,000 yen after the latest hike. Other H-beam makers are expected to follow the price hike.

The market price is 80,000 yen per tonne around Tokyo after the makers’ price hike. Dealers raised the reselling price to 85,000 yen this week when Tokyo Steel announced the price hike by 5,000 yen. Dealers would try to raise the reselling price more after Nippon Steel’s hike of this time. The reselling price may reach 90,000 yen after Japanese long holidays in early May.