H-beam Price is Strong around Tokyo and Osaka

H-beam market price is strong tone at 79,000-80,000 yen per tonne for product with 200 by 100 millimeters width at the dealers’ site around Tokyo. The dealers are increasing selling price due to the makers’ price hike. Because the makers are expected to additionally raise the selling price, the market price seems to continue to rise.

Japanese distributors’ H-beam inventory held by Tokiwa-kai, which is a group of dealers dealing Nippon Steel’s products, decreased by 17.4% to 36,103 tonnes at the end of March from a month ago around Tokyo, while the dealers’ shipping increased by 24.9% to 21,128 tonnes. The shipping increased when the users increased the order due to anticipation of price rise. However, the dealers’ shipping volume is expected to decrease in April from March due to low order.

The demand hovers at a low level. Building price of steel frame is dropping. The dealers aim to increase selling price to 85,000 yen around Tokyo.

H-beam market price increased to 80,000 yen in the first half of April around Osaka, which was 80,000 yen since February 2009.

Small dealer source said users’ order increased after March, but the order may decrease with its rebound.

The supply and demand is tight when makers maintain to reduce the supply of H-beam. Dealer source said some products are running short when makers cut the acceptance of order. Each dealer can’t comply with price cut by users.