Flat Sheet Steel Price Declines by 1,000-2,000 yen around Tokyo

Sheet Steel market price declined by 2,000 yen per tonne for hot rolled steel and for pickling steel and by 1,000 yen for cold rolled steel around Tokyo. The price is around 89,000-90,000 yen for hot rolled, 90,000-92,000 for pickling and 105,000-107,000 yen for cold rolled. The price is expected to decrease more under demand slump and lower offer by suppliers at home and abroad.

The dealers’ shipment decreases when the manufacturers in automobile, electronics and construction machinery industry reduce the production while the demand supported the steel demand before. The demand for construction also decreases more due to suspension and postpone of building plans. A major dealer source said the shipment gets lower month by month since August.

The dealers’ inventory adjustment delays under slow demand. Some dealers sell inventory at lower price for liquidity or for selling before further price down. Such move accelerates lower price expectation.

Tokyo Steel Manufacturing maintains the sheet steel price for January shipment and market price in China rise slightly. Despite of such positive sings, the buyers increase pressure for lower price when economy gets slower. A dealer source expects the market should decrease more when the level is much higher than price of Tokyo Steel and imports.