Steel Plate Price Keeps Strong in Tokyo

Steel plate market price keeps strong at around 115,000 yen per tonne for base size with 19 millimeters thick, 5 feet width and 10 feet length around Tokyo. Cut processed plate market price is around 125,000 yen per tonne. Both market prices rose by 20,000 yen per tonne compared with last month.Japanese electric furnace steel makers increased the plate price in February-March. Moreover, Japanese integrated steel makers increased the plate price by 20,000 yen per tonne effective for April orders. Dealers have passed higher purchasing costs on their reselling prices.Demand is expanding thanks to good conditions in shipbuilding and construction machinery industries. Japanese plate makers cannot catch up with the increasing demand despite of their full operations.On the other hand, market dealers’ plate shipment keeps slow. Dealers’ selling volume has not increased due to slow starts of small- and medium-sized building constructions. Delivery lead time is being longer even though the slower demand in dealers’ market. Plate supply is tightening. Especially standard sized plates are running short.Plate inventory held by distributors around Tokyo was 113,318 tonnes at the end of February, which hit the lowest since February 2007, according to Japan Steel Plate Shearing Industrial Guild. The stock decreased to 1.184 months for the shipment, down by 0.131 points from last month.Demand is expected to keep strong from specific users. Shearing processors have tried to secure plate when the plate makers cannot increase their output largely. Dealers are likely to raise the reselling price more with expectations that plate makers would announce another price hike.