Channel Market Price Drops by 1,000 y/t in Tokyo

Channel steel market price decreased by 1,000 yen to 75,000-76,000 yen per tonne from last week around Tokyo. The price is higher than equal angle market price by 2,000-3,000 yen while the price gap narrowered by 1,000 yen. The channel market price is expected to continue downward trend due to price gap among shape steel makers.

Channel price had kept 5,000-yen higher level than equal angle price so far. However, Osaka Steel and JFE Bards & Shapes revised the price difference between channel and equal angle to 3,000 yen for November contracts. Dealers reflected the price revision on their reselling prices.

Tokyo Steel Manufacturing’s channel price is lower than other makers by over 10,000 yen per tonne. Channel market price is more decreasing than equal angle price. Some dealers point out the price difference between channel and angle is closing and may run out.