Structural Steel Bar Price to Drop More in Tokyo

Structural steel bar market price is around 130,000 yen per tonne for carbon steel for machine structural use and around 160,000 yen for chrome-molybdenum alloy grade around Tokyo. The price is likely to keep decreasing slightly when the dealers are in the middle of inventory adjustment while the shipment is slow.

Integrated steel makers reduced the selling price by 15,000 yen per tonne in June while Daido Steel cut the price by 20,000 yen and Sanyo Special Steel cut the price by 30,000 yen. The dealers expect the integrated steel makers could cut the price additionally in later the year.

Electric furnace special steel makers expect the price cut was the final when higher ferrous scrap cost pressures on the profitability. However, the dealers’ market price is as low as less than 130,000 yen per tonne for some transactions. The price could decrease more due to very slow demand in the dealers’ market while the contract users’ demand is recovering slightly in June.