Square Steel Pipe Rises by 5,000 yen/t in Tokyo

Mid-sized square steel pipe market price increased by 5,000 yen per tonne around Tokyo after the distributors around Tokyo increased the offer since August 1. The market price already reflected makers hike in July exceeding 130,000 yen for base size and 140,000 yen for colored products.

The makers increased the selling price by 15,000 yen per tonne for July shipment. They try to pass higher hot rolled coil cost price, which increased due to additional cost up for iron ore and raw materials, while the pipe makers already increased the price by 20,000 yen in April shipment.

The slower demand pressures on the mid-sized square pipe market under slowing economy and low level building demand due to new building standard law. The dealers try to secure profitability despite of the resistance from the buyers. The dealers finally got 10,000 yen higher reselling price in July though the pace depends on the dealers due to different position for inventory and other conditions.

The dealers started 5,000 yen per tonne higher offer since August 1. The higher offer is almost accepted by the buyers. The price reached 131,000 yen per tonne for pipe with 2.3 millimeters thick and 100 by 100 mm width and 140,000 yen for colored products.