Column Market Price in Weak Trend, Tokyo

Market price of large diameter square steel pipe or column is weak at 107,000-110,000 yen per tonne for BCR grade base sized products around Tokyo. The price lowered by 4,000 yen from the previous week and by 42,000 yen from the peak in October 2008. Column dealers seem in red at the current reselling price compared with makers’ selling price. The market price is likely to decline more with slow demand.

Column dealers generally put cut and groove process charge of 7,000-10,000 yen per tonne on makers’ selling price. The current market price is lower than this level. Some distributors started to appeal the stance to sustain the reselling price above 110,000 yen. Distributors require price cut against makers to keep the present price level.

Meanwhile, some dealers are offering cheap reselling price to secure sales volume. The market price is gradually declining. At the same time, column users are requesting price down against distributors because there exist low prices for large-size construction projects.

H-beam market price is entering the bottom level. However, column market price is still higher than H-beam by around 40,000 yen per tonne and the unit price for steel frame works is decreasing. Column market price is unlikely to hit the bottom yet.