Weak H-Beam Price in Tokyo

H-beam market price is likely to change to be weak tone after the Bon vacation break around Tokyo when many building project postponed. The market price is 127,000 yen per tonne for 200 by 100 millimeters width at dealers’ sites around Tokyo. Dealers are increasing to 130,000 tonnes per year.The market price rose rapidly in January-June, which increased by about 60% in August from January. The speculative demand increased when Tokyo Steel Manufacturing, Japanese largest H-beam maker, raised selling price by 48,000 yen per tonne for January-June and Nippon Steel, Japanese biggest integrated steel maker, raised selling price by 30,000 yen per tonne, too. The market price increased by 7,000 yen per tonne in the first half of July when Nippon Steel additionally raised selling price by 12,000 yen per tonne for the sales in July. But, dealers’ price hike is hard to penetrate to users when Japanese building construction floor area decreased to 29.65 million square meters by 17.3% in January-June from the same period last year. Dealers’ shipment decreased by 5-10% in August compared with May-June.The market price became weak tone because ferrous scrap price decreased in the last half of July. Makers decreased acceptance of the order by 30% in June-August compared with May, which decreased supply volume. But, the demand for dealers is expected to more reduce due to decreased small-middle size building project within this year.