Japan: Nippon Steel rolls over H-beam prices for Sept spot sales

Nippon Steel, Japan's largest integrated mill and a leading H-beam producer, has decided to roll over its H-beam prices for the fifth month for September domestic spot sales to give the market another month to transfer previous hikes by producers, though the company warned of possible price hikes for October sales to shift the further rise in costs, the company announced on Wednesday.

Nippon Steel Structural Shapes, Nippon Steel's subsidiary in Wakayama in western Japan, has also decided to keep its H-beam prices unchanged for September, though it claimed the recent rise in scrap prices and higher power and distribution fees.

Both companies do not disclose their exact list prices, but as of Thursday morning, deals for SS400 grade 200x100mm H-beams in Tokyo were being transacted at Yen 125,000-126,000/tonne ($868-875/t), unchanged on month, though up by Yen 7,000/t since May when the company started rolling over prices, sources confirmed.

Nippon Steel's H-beam rival, Tokyo Steel Manufacturing, has also announced on Monday to keep its H-beam prices for October sales unchanged at Yen 124,000/t, as reported.

A Tokyo-based construction steel trader observed that demand of H-beam had been firm and inquiries became more active than those for other construction steel materials, and H-beam stocks had been kept at an adequate level. "We expect buyers would agree on higher prices to secure the material," he predicted.

By end-August, H-beam stocks held by Nippon Steel's Tokiwakai group of some 90 distributors across Japan totaled 184,600 tonnes, down 0.9% on month but 1% higher on year, according to the company.

Meanwhile, Nippon Steel has decided to shorten the project-based H-beam delivery period from five months to three months, to avoid the risk of rising production costs. For those orders with their delivery period longer than three months, Nippon Steel will still accept such orders, though their prices may be re-negotiated depending on the change in costs, Mysteel Global noted.

Written by Yoko Manabe, yoko.manabe@mysteel.com
Edited by Zhenqi Yang, yangzhenqi@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.