Japan H-beam Market Price Approaches 60,000 Yen/t, 6-Year Ago Level

Japanese H-beam market price continues declining and currently reaches the level as low as 5 years and 10 months ago. The market price is approaching 60,000 yen per tonne around Tokyo and Osaka. H-beam makers keep 70-80% productions compared with the usual level in response to very stagnant construction market. However, H-beam supply and demand balance is still loose. The market price is likely to maintain down trend for a while.

H-beam market price recently lowered by 2,000 yen to 63,000 yen per tonne around Tokyo. The market price was 61,000 yen around Osaka at the end of last week. The market price is gradually declining with low demand. There seem order receipts of civil engineering at makers’ selling price for large-size projects.

H-beam demand dropped in early autumn and stays at the low level. Distributors are approving customers’ price cut requests due to very few orders in the market. Some distributors are hurrying to reduce high-price inventories even at very low price.

Japanese distributors’ H-beam inventory is currently decreasing but still seems surplus against the shrinking demand. The market price is concerned to decline more when distributors are willing to reduce their inventories.