Weak Channel Price around Tokyo

Section Steels market price is decreasing from 75,000 yen per tonne for equal angle steel and 80,000 yen for channel steel around Tokyo. The price is decreasing after Tokyo Steel Manufacturing announced price cut in October. The price would decline more while the demand remains low.

The inventory held by dealers was as same as September at the end of October. The dealers’ shipment seemed to decrease by around 3% in October from September while the dealers reduced the purchase volume expecting lower market price.

Price gap in channel steel between Tokyo Steel Manufacturing and major makers such as Osaka Steel and JFE Bars & Shapes widened to around 14,000 yen per tonne. The dealers reduce the reselling price for channel and the lower price impacts on angle steel price. The users require price cut and the dealers reduce the price at a certain level to secure the sales volume. The market price would keep decreasing.