Weak H-Beam Price in Tokyo

H-beam market price is weak at around 126,000-128,000 yen per tonne for base size with 200 by 100 millimeters width around Tokyo. The market interests try to find the next trend when ferrous scrap market price plunged by more than 30,000 yen. The supply balance is easing while Nippon Steel reduced the order receipt from dealers since June. Tokyo unit of Tokiwa-kai, which is group of distributors dealing Nippon Steel’s material, reported the H-beam inventory at end of August was 2.59 month of the shipment, which is much higher than normal level of 2 months. The shipment decreased by around 30% while the dealers’ input to the warehouse decreased by around 23%. The shipment and inventory in September is in line with the August level. Nippon Steel left the selling price unchanged for September order. The dealers around Tokyo try to keep the reselling price at around 130,000 yen per tonne. The dealers are forced to keep the price when they accept high priced materials from the makers. The dealers and buyers try to find the next trend until Tokyo Steel Manufacturing announces the selling price along with the ferrous scrap market.