Weak Structural Steel Bar Price in Tokyo

Structural steel market price is weak at around 125,000 yen per tonne for carbon steel bar for machine structural use and at around 165,000 yen for chrome and molybdenum steel bar around Tokyo. Both prices decreased by 5,000 yen from last month.

The market inventory is increasing when inventory adjustment by makers and dealers hasn’t progressed. Dealers’ shipment is slow.

The users eye the price negotiation between structural makers and automobile makers. Automakers are holding off structural steel procurement with an expectation the market price could fall.

On the other hand, some dealers offer cheaper reselling price to reduce inventories. Some dealers are managing to keep business by public subsides. But the business situation is hard when the dealers’ sales halved in March from a year earlier and the profit shrank by 40%. Dealers’ shipment is expected to maintain low. A large dealer said automobile output is low except for environmental car.