H-beam Market Price Gradually Declines, Tokyo

H-beam market price is weak at around 80,000 yen per tonne without freight for product with 200 by 100 millimeters width around Tokyo. The market price is depressed after Tokyo Steel Manufacturing announced to lower its H-beam selling price by 5,000 yen per tonne. Distributors are decreasing the reselling price with strong price cut offer from H-beam users. Some dealers seem offering below 80,000 yen. The market price is likely to maintain downward.

Dealers’ H-beam inventory seems decreasing by about 5% compared with February. The shipment is shrinking by about 5% month-to-month when actual demand maintains stagnant and the users expect H-beam price would lower more. Meanwhile, H-beam arrival from makers is decreasing by around 10%.

H-beam price is expected to decline more because electric furnace steel makers’ ferrous scrap purchasing price became below 20,000 yen per tonne. In addition, Tokyo Steel Manufacturing set its H-beam selling price at 68,000 yen per tonne and other makers are likely to follow the price down.

The price range is widening downward among dealers. Dealers are forced to approve users’ price cut offers. The market price would continue to decline gradually.