Nippon Steel, Japan’s largest integrated mill and a leading heavy sections producer, will keep its H-beam prices unchanged for November domestic spot sales, the company announced on Thursday, making for the seventh straight month that it has rolled over its beam prices.
“Manufacturing costs continue to rise, including a significant rise in electricity and energy costs,” Nippon Steel said in a statement. “(So) we will keep the price unchanged for this month, but improve the product price after the next month,” it vowed, just as it had promised last month for this month’s sales, as Mysteel Global reported.
Nippon Steel never reveals its list prices, but as of Thursday morning, deals for SS400 grade 5.5/8 x 200x100mm H-beams in Tokyo were still being transacted at Yen 125,000-126,000/t ($892-900/t), unchanged for two months, but up by Yen 7,000/t since May.
Meanwhile, Nippon Steel Structural Shapes, Nippon Steel’s subsidiary in Wakayama in western Japan, has also rolled over its H-beam prices for November.
In its outlook for the construction steel market, Nippon Steel was cautiously optimistic. “Demand for steel frames is expected to remain at a high level as full-scale steel frame production for large projects will begin in the second half of Fiscal 2022 (ending March 31),” it said. “On the other hand, due to delays in completing designs and the impact of soaring material and equipment prices, the (construction) schedule of large-scale projects is delayed.”
The company also noted “the increasing number of cancellations and postponements of plans for small- and medium-sized projects,” adding that it will be necessary to continue to monitor market trends.
Nationwide stocks of H-beams seem stable, according to Nippon Steel’s data for beam inventories being held by its Tokiwakai group of some 90 distributors across Japan. By the end of October, the distributors were holding 184,000 tonnes, lower by 1,100 tonnes from end-September, but up 1,300 tonnes from end-October last year.
The members’ inventory ratio was 2.5 months, lower by 0.19 months from end-September, but up by a tiny 0.04 months from end-October last year. Nonetheless, the turnover ratio was this year’s smallest, showing that distributors are continuing to purchase carefully and are nursing their stocks.
On the latest data from Japan Iron & Steel Federation, Japan produced 316,500 tonnes of H-beams in October, higher by 0.6% on year but up by a large 8.3% from September.
Meanwhile, on November 22, Himeji-based mini-mill Yamato Steel announced that it was keeping its H-beam prices unchanged for December spot sales.
In its statement, Yamato said that while soaring steel scrap prices have subsided, “the depreciation of Yen has accelerated the rise in electricity and gas rates.”
Yamato is keeping its selling prices unchanged because it wants to “assess the state of energy costs from the fourth quarter onward,” it said.
Mini-mill Osaka Steel also announced on Thursday that it will keep its sections prices unchanged for December, saying that energy costs are increasing while scrap prices are weakening.
Written by Russ McCulloch, russ.mcculloch@mysteel.com
Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.
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