H-beam Market Price Strongly Surges in Japan

H-beam market price is strongly surging in Japan. The market price reached 73,000 yen per tonne for base size products around Tokyo last week, increasing by 7,000 yen. Distributors around Osaka are also aggressive to raise the reselling price. The market price is expected to keep upward for a while.

Nippon Steel announced the firm raises H-beam selling price by 15,000 yen per tonne for April contracts. Other steel makers have also announced H-beam price hike recently. Distributors around Tokyo raised their offer price to 75,000 yen on Friday to follow the makers’ hike. Distributors are likely to offer 80,000 yen on or after April 1st.

Distributors’ H-beam inventory is short for some sizes. The supply and demand balance is tightening. Distributors are hurrying to put high cost price on their reselling price to sustain profitability.

Around Osaka, H-beam market price upped by 4,000 yen to 68,000 yen per tonne for base size products last week. The market price upturned in mid February and kept uptrend so far. The price has surged by total 10,000 yen from the recent bottom.

The actual demand is still inactive but some users are moving to contract H-beam before the market price rises more. Meanwhile, H-beam distributors’ inventory is short for some sizes when steel makers have regulated H-beam shipment for market dealers.

The supply and demand balance is likely to maintain tight around Osaka in and after April when Sumikin Steel enters regular maintenance.