Japan: Nippon Steel holds H-beam prices for October

Nippon Steel is keeping its domestic H-beam prices for current month contracts (October production) unchanged, the Japanese integrated steel giant announced on September 21, joining other makers including mini-mill Tokyo Steel Manufacturing and sections maker Yamato Steel in rolling over domestic prices.

"A further price improvement is necessary, but we will assess the penetration of price increases so far," Nippon Steel said in a statement, adding that it "will continue to take a cautious stance on order quantities as is necessary." The company has now held its H-beam prices for six consecutive months after it had lifted these by Yen 3,000/tonne ($20/t) in March, as Mysteel Global reported.

On Tuesday, Tokyo Steel had said it would hold all its prices for October, citing a "sense of stagnation" in the construction steel market nationwide, as reported. Nippon Steel never reveals its H-beam prices but Tokyo Steel's list price for base size 100×100~300x300mm H-beams stays at Yen 127,000/t. Deals for SS400 grade 5.5/8 x 200x100mm H-beams in Tokyo are still being negotiated at Yen 125,000-126,000/t and those on Osaka at Yen 122,000-123,000/t, unchanged on month.

Nippon Steel announced its price policy on the same day it released data relating to H-beam stocks held by its Tokiwakai grouping of domestic H-beam dealers at end-August which showed that the dealers at that time were holding 191,100 tonnes of the beams, lower by 6,100 tonnes or 3.1% from end-July - the first decline in the dealers' stocks in four months.

Both inbound and outbound H-beam deliveries decreased last month against the backdrop of cautious purchasing among traders and building contractors and the sluggish demand, Nippon Steel observed of the Tokiawaki data, saying that stocks declined because fewer beams arrived at the dealers' yards than were dispatched.

"Due to the heat in the summer and the shortage of building workers, there were many interruptions at construction sites," a Nippon Steel building materials sales official was quoted as saying.

Written by Russ McCulloch, russ.mcculloch@mysteel.com
Edited by Alyssa Ren, rentingting@mysteel.com

Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.