Dropping Plate Price in Tokyo

Plate steel market price decreased to 126,000 yen per tonne by 1,000-2,000 yen from the ended of November for product with 19 millimeters thick, 5 feet width and 10 feet length and to 145,000 yen by 5,000 yen for cut processed materials at dealers’ sites around Tokyo. The demand for construction or industrial machinery dropped in addition to building construction. The small-middle size building construction plans keeps slow around Tokyo and the large size building construction plans is expected to be made impact from business downturn. Plate export is decreasing. Construction or industrial machinery makers are revising down the output.

Dealers’ inventory volume increased to 117,328 tonnes by 0.7% in the ended of October from a year earlier, according to Japan shearing processor association. Their shipping volume decreased in October from a year earlier for 5 consecutive months. Their inventory rate increased to 127% by 5.7 percentage points in the ended of October from last month.

Tokyo Steel Manufacturing, Japanese major steel palate maker reduced the selling price of the plate to 91,000 yen per tonne in November and to 86,000 tonnes in December. The firm’s cheaper plate is expected to be delivered to dealers in the first half of this month. Shearing processor source said the firm should decrease the selling price in accordance with Tokyo Steel Manufacturing’s price cut.

On the other hand, the market price doesn’t slump when Japanese integrated steel makers keep the selling price at the last half of 110,000 yen per tonne. However, the market price is expected to keep weak tone when productive activity of users for manufacturing industry is decreasing.