H-Beam Price Hits First Drop in 3 Years in Tokyo

H-beam market price decreased around Tokyo for the first time in 3 years. The price dropped by 1,000 yen to 126,000 yen per tonne at dealers’ sites around Tokyo after the price increased by 47,000 yen from the beginning of the year. The price is adjusted due to slower building demand than expected and price cut by the largest maker of Tokyo Steel Manufacturing for September order. The dealers try to keep the price level while the buyers try to increase the pressure for lower price. The dealers started to compromise for certain sales volume. The dealers offer 130,000 yen per tonne but now they sell at 130,000 yen including freight to the buyers. Some transaction is as low as around 125,000 yen. Tokyo Steel reduced the selling price by 10,000 yen to 118,000 yen per tonne for September order pressuring on the market. The market interests expect Tokyo Steel could reduce the price more for October order when ferrous scrap price dropped by around 30,000 yen per tonne from the peak in July. Nippon Steel, which has major market share around Tokyo, left the selling price unchanged for September order while the firm reduced the order receipt from the dealers by 10% from August. Despite of the price keeping effort, the dealers’ market price dropped recently. However, the dealers expect the price could keep the historical high level while they wait the price announcement by Tokyo Steel for October. A dealer source said the dealers cannot reduce the reselling price when high priced materials arrive at their warehouses. The market could keep weak despite of the supply adjustment by the makers and price keeping effort by the dealers.