H-Beam Market Price Drops by 2,000y/t, Tokyo

H-beam market price continued lowering by 2,000 yen to 83,000 yen per tonne last week around Tokyo. The price decreased by total 44,000 yen from the peak in September 2008 and returned to the level as same as January 2008. Dealers’ shipment keeps slow. The market price would continue downward due to surplus inventory. Flat steel market price also decreased by 5,000 yen to 105,000 yen per tonne around Tokyo.

Dealers’ inventory is decreasing but selling volume is more decreasing. Some dealers expect the inventory adjustment could not finish until the end of April. Dealers are likely to offer lower reselling price to secure sales volume and reduce inventory.

The market price is decreasing when Tokyo Steel Manufacturing, Japanese largest H-beam maker, cut the selling price to 78,000 yen per tonne. Other makers reduced the selling price in February. Moreover, makers are expected to decrease the selling price when ferrous scrap price is decreasing. Users would continue to minimize H-beam procurement with an anticipation of price down.

Flat steel makers didn’t change the selling price in March. However, some dealers show cheap reselling price under the impact of lower H-beam and plate market price.