H-beam and Rebar market price Continue Rising in Tokyo and Osaka

H-beam market price increased by 4,000-5,000 yen to 79,000-80,000 yen per tonne from last week around Tokyo. H-beam price reached the level as high as equal angle price for the first time in 14 months. Dealers will announce the additional H-beam hike soon, eyeing 85,000 yen of the reselling price. H-beam market price is surging rapidly and expected to exceed the angle price.

Generally, H-beam market price is said to become higher than the angle price by about 5,000 yen considering production cost. However, actually, H-beam price directly delivered from the makers became irregularly lower than the dealers’ reselling price by intensifying competition with low demand in 2009. H-beam market price was cheaper than angle price last year.

On the other hand, H-beam makers are raising the selling price when raw material price is expected to continue to rise in near future. Dealers’ reselling price is around 80,000 yen but Japanese integrated steel makers offered the selling price at 85,000 yen to the users.

Rebar market price is also increasing by 5,000 yen to 65,000 yen per tonne around Osaka, reaching 65,000 yen for the first time since April 2009. The market price is strong thanks to the makers’ price hike. The market price would keep upward trend. A dealer source said the demand increased by rising market price in 2008 but the market price is rising despite of low demand this year.

Tokyo Steel and Kyoei Steel raised the selling price of rebar by 5,000 yen per tonne due to higher ferrous scrap price for April contacts. Daiwa Steel raised the selling price by 7,000 yen and Nakayama Kogyo by over 7,000 yen. A large dealer said the makers’ price hike penetrated in the market when makers continues output reductions. Rebar dealers aim to bring the reselling price to 70,000 yen.