Steel Sheet Price Decreases by 3,000 Yen/t, Tokyo

Steel sheet market price decreased by 1,000-3,000 yen per tonne this week around Tokyo. Coil centers and dealers declined the reselling price when Tokyo Steel Manufacturing reduced the selling price, ferrous scrap price dropped and the demand maintained weak. Some coil centers lowered the reselling price to 90,000 yen per tonne for hot-rolled steel sheet and pickled steel sheet, and to 100,000 yen for cold-rolled steel sheet.

Japanese annual automobile production was initially expected at 12 million cars and 9 million knock down sets for a year to March 2009. However, domestic automakers announced output reductions after summer and the current production forecast is lowered to 11 million cars and 9 million KD sets.

The market also keeps slow for electric appliances and manufacturing machines. Building construction plans are postponed or stopped.

The supply and demand balance of steel sheet is loosing. Coil centers and dealers are hurrying to adjust their inventories. However, sheet users are advancing inventory adjustment, too. Consequently sales competition gets severer.

The market price is 93,000-94,000 yen per tonne for hot-rolled steel sheet for mid-thick products, 93000-96000 yen for pickled steel sheet, 106,000-109,000 yen for cold-rolled steel sheet and 111000-113000 yen for surface treated steel sheet.