Plate Price to Hit Bottom in Tokyo

Mid-thick plate market price is likely to hit the bottom around Tokyo when Chinese steel sheet market price rebounded slightly and Japanese largest electric furnace steel maker, Tokyo Steel Manufacturing is expected to sustain its product selling price for February order. However, there are also negative factors that dealers’ shipment is slow and that dealers’ inventory adjustment is only half done. Coil centers or dealers are unwilling to lower their reselling price. Many coil centers and dealers are suffered from monthly loss since November 2008.

Mid plate market price is 82,000-84,000 yen per tonne around Tokyo, down by around 30,000 yen per tonne from the peak in last year. Into this year, large dealer or small dealer sources said the market became comfortable.

Bao Steel, Chinese top steel maker, raised the selling price of hot rolled coil and pickled steel coil for February orders. Other Chinese steel makers launched the price hike one after the other. Chinese steel sheet market price reached over US$ 500 per tonne.

Japanese trader forecasts Chinese steel sheet market price more rise in mid February. Japanese large dealer source said South Korean and Taiwanese exporters started to increase the selling price of steel sheet to Japan.