Weak Structural Steel Price in Tokyo

Structural steels price is declining gradually from 70,000 yen per tonne for equal angle steel and 74,000 yen for channel steel around Tokyo. The order remains low t o dealers from users at the beginning of the year. Major structural steel makers set the price unchanged. However, market sources see the price would decrease more when the demand for construction is not expected to increase.

The dealers’ shipment would not increase in January, according to market sources. While dealers reduce the purchase volume, the inventory held by dealers seems to be higher than the demand. The dealers are concerned that the purchase price would increase while ferrous scrap and other material costs may increase. The dealers try to hold the current price. However, low transaction price would affect the market price. Some large-scale construction projects, which were stopped, seem to be restarted. However, the demand does not increase. The pressure to cut prices is strong.