Angle and Channel Price Drops around Osaka

Shaped steel market price for equal angle decreased to 68,000 yen per tonne and 71,000 yen for channel price around Osaka. Because major makers reduced the selling price, the market price dropped. Users or dealers expect the market price decreases in near future when ferrous scrap price dropped, and Osaka Steel and JFE Bards & Shapes announced the price cut for the first time in 7 months. Users expect the market price drops, and maintain spot purchase of angle and channel. The demand keeps low.

On the other hand, inventor y in the market is increasing due to low sales. Because dealers want to reduce inventory of higher price at an early date, many dealers are selling with cheaper price due to users’ requirement for price cut. A dealer source said dealers can’t contract with users if dealers don’t reduce the selling price, and dealers are contesting the sales by cheaper price for reduced inventory.

Because the makers revised extra price between equal angle and channel to 2,000-3,000 yen per tonne from 4,000-5,000 yen, the market price difference reduced to 2,000-3,000 yen between equal angle and channel.