Lower Angle, Channel Price in Tokyo

Market price of angle and channel steel is weak at around 76,000 yen for equal angle with 6 millimeters thick and 50 mm width and 81,000 yen for channel with 5 mm thick, 50 by 100 mm width around Tokyo. Plunging mood settled down after Tokyo Steel Manufacturing left the selling price unchanged for June contracts. Most dealers finished the inventory adjustment. But the market price is expected to continue declining due to low orders from users.

Dealers’ angle inventories deceased to 1.5 months for shipment. Overstock condition was relieved. Dealers’ shipment maintains low in May. Dealers are minimizing order volume to makers. On the other hand, dealers’ channel inventories are still surplus. There seems price gap among makers by around 3,000 yen. Users are strongly requesting price cut.

Price plunging mood was receded when electric furnaces’ ferrous scrap purchase price is rising. But downtrend still remains with unforeseeable demand. Some dealers are selling angle price at around 73,000 yen per tonne.