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NSC Considering More Domestic H-Beam Markup From April Onward
= Tokiwakai's End Feb H-Beam Stocks Down To 199,600 Tons
Nippon Steel Corp (NSC) is considering executing a more domestic price increase of H-beam in its supply contracts with wholesalers from April onward so that the company can struggle for stable H-beam supplies irrespective of the domestic business environment for building materials.

Until now, NSC has priced up its domestic H-beam supplies to wholesalers by a cumulative Y8,000/ton. The cumulative price increase breaks out as the first Y5,000/ton in the supply contracts for February and the remaining Y3,000/ton in those for March.

In this connection, the following are how things stand globally, as summed up by NSC.

<>The world's steel demands are recovering toward an expansion, a trend that has become more pronounced than before.

<>The world's market conditions for steel products and ferrous scrap indicate a continued upswing in prices, while a tight supply-demand situation is predominant for steel products.

<>With an enhanced buoyancy in the world's prices of resources and raw materials, the corresponding cost increase is unavoidable in operations of integrated steelworks.

Meanwhile, Japan's Tokiwakai group of domestic steel distributors held in stock a total of 199,600 tons of H-beams across the nation at the end of February 2010, down 15,600 tons or 7.2% from a month ago, according to NSC. The Tokiwakai group is concerned with domestic sales of steel products from the nation's largest integrated steelmaker.

As a result, Tokiwakai's H-beam stocks fell off to less than 200,000 tons for the first time in 23 years since 188,500 tons at the end of October 1987. The reduction this time, though, was a temporary one in the wake of deals to meet requirements that anticipated an upswing in the H-beam market, according to NSC.

In the breakdown by main trading areas, Tokyo accounted for 43,700 tons, down 5,200 tons or 10.6% from a month ago; Osaka 44,400 tons, down 7,300 tons or 14.1%; and Nagoya 25,600 tons, no change.

On its part, NSC expects a low level of domestic demand to continue for H-beams. As a result, the company is contemplating maintaining its enhanced production cutback of H-beams while holding down intakes of orders from wholesalers.
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last modified : Mon 15 Mar, 2010 [10:46]
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