Steel plate market price is weakening at 126,000 yen per tonne for base sized products with 19 millimeters of thickness, 5 feet of width by 10 feet of length and at 145,000 yen per tonne for processed plate of base size around Tokyo.
A distributor source said wholesalers’ order receipt volumes are decreasing by about 30% or more. There are fewer projects of mid- and small-sized buildings while many of large construction projects are postponed or canceled. Plate demand is also plunging from construction machines after autumn. Shearing processors’ operating rate is currently below 50% when construction machine makers are reducing productions or adjusting inventories. Distributors’ plate inventories are increasing with less shipment. Another background is that makers’ delivery became faster than before with total demand decline. Distributors’ plate sales volume almost halved in December from a year earlier. Many distributors expect their sales would worsen in January. Japanese integrated steel makers sustain their selling price while Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, announced to lower its plate selling price for February. Plate market price is likely to continue decreasing.Japan Steel Scrap Composite Prices (Sangyo Press)
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