Weak Structural Steel Pipe Price in Tokyo

Market price of carbon steel tubes for general structural purposes is weak at around 125,000 yen per tonne for STK400 grade with 48.6 millimeters of diameter and 2.3 mm thick around Tokyo. Some transaction is lower due to demand slump. The price is likely to decrease more under pessimistic demand outlook.

The dealers’ shipment is very slow due to construction demand slump. The dealers expect the demand could keep slow through September. The market price of STK grade decreases gradually since March. The dealers sell at much less than 125,000 yen per tonne for large lot transactions despite of the less profitable for the dealers.

Welded steel pipe makers plan to keep 50-60% production cut for April-June compared with same period of 2008. However, the supply is more than the very low demand level and the market expects the lower price depending on the economy trend and iron ore and hot rolled coil price.