Structural Carbon Steel Price Drops in Tokyo

Market price of structural carbon steel is decreasing around Tokyo this month. The price lowered to 130,000 yen per tonne for carbon steel round bar for machine structural use and 160,000 yen per tonne for chrome-molybdenum grade round bar. Both prices declined by 5,000 yen in May to follow weak market in Osaka. Dealers’ inventory adjustment has progressed slowly with stagnant shipment. Some dealers forecast the market inventory returns to the moderate level for July-September.

Some of Japanese integrated steel makers agreed with Japanese major automakers to decrease steel sheet selling price by 15,000 yen per tonne for fiscal 2009 starting in April. Market price of structural steels is impacted by this conclusion and has decreased by 15,000 yen per tonne since the beginning of this year. A major dealer source said dealers’ order receipts keep low due to surplus inventories at the users such as component makers.

Inventor adjustment is relatively delayed for the products scheduled to be shipped for large contract users. Automobile and construction machine makers maintain low operations. A middle-ranking dealer source said dealers are forced to reduce inventories and constant costs until the demand recovery. Dealers expect the demand recovers in the last half of fiscal 2009.