H-beam and Steel Sheet Prices Weakening toward Autumn

H-beam market price is likely to change to weak tone for autumn around Tokyo. The demand in autumn isn’t expected to increase.Nippon Steel, Japanese major H-beam maker, raised h-beam price by 15,000 yen per tonne in July due to rising material costs. Dealers will keep reselling price at around 130,000 yen per tonne when expensive products are delivered. Makers reduced the supply volume by 20-30% in August compared with April-May. However, the supply and demand balance is expected to loose due to slower demand.The market price is 127,000 yen per tonne around Tokyo. The market is expected to keep see-and-wait situation. After Japanese long holiday break in mid August, the users are likely to strongly request price cut to dealers.Moreover, steel sheet price keeps flat around Tokyo. The demand is reducing from building materials and automobiles. A dealer source said they need to raise reselling price due to surging purchase price but the hike is difficult when the demand maintains weak.Sheet steel market price is around 104,000-106,000 yen per tonne for hot rolled flat steel at dealers’ sites around Tokyo. The price is 105,000-108,000 yen for pickling steel, 112,000-115,000 yen for cold rolled flat steel and 125,000-128,000 yen for surface treated steel sheet.Users are considering using other materials from steel products since steel price stays very high. Dealers anticipate bankruptcy of major general contractors, steel frame processors.