Structural Steel Market Price under Weak Tone in Tokyo

Structural steel market price is weak at 130,000-135,000 yen per tonne for SC steel and at 160,000-165,000 yen per tonne for chrome molybdenum steel in Tokyo. The market price is expected to drop after major integrated steel makers and Toyota Motor agreed in price cut for automotive steels by 15,000 yen per tonne last week. Meanwhile, price down range is unclear when ferrous scrap price is rising.

Dealers are adjusting the inventory. Dealers’ sales volume is decreasing widely. A major dealer source said their revenue decreased by 40% from last year. Structural steel makers are preparing to ease output reduction but they may continue output reduction due to slow shipment and high inventory.