Angle and Channel Market Prices Maintain Downward, Tokyo

Market price is weak at around 80,000 yen per tonne for equal angle steel with 6 millimeters thick by 50 mm width while at around 85,000 yen per tonne for channel steel with 5 mm thick, 50 mm by 100 mm width at dealers’ sites without freight around Tokyo. Shape steel price maintains downward mainly for channels when H-beam market is in weak mood. The price is likely to continue decreasing.

Distributors’ shape inventory slightly decreased in March from February. Their shipment decreased by about 5% month-to-month when the bottom price is unforeseeable and customers minimize the procurement. Meanwhile, shape steel arrival volume also decreased by about 5%. Distributors are decreasing order volume for steel makers with an expectation that makers could lower the selling price additionally.

Steel makers hold 0.3-month order backlogs from distributors for angle steel while 1-month backlogs for channel steel. Inventory adjustment is delayed for channels. At the same time, Tokyo Steel Manufacturing and other major makers lowered the selling price by about 3,000 yen per tonne. Users are strongly requesting price cut.