Sheet Steel Price Rises by 4,000-6,000 yen/t in Tokyo

Steel sheet market price is accelerated to increase around Tokyo. The rice increased by 4,000-6,000 yen per tonne for hot rolled, pickling and cold rolled sheet in the month after 8,000-10,000 yen increase in February. The hot rolled sheet price renewed record at 85,000 yen per tonne for base size. The price could increase more when trading firms target 90,000 yen level for hot rolled sheet in the month. Domestic integrated steel makers increase the selling price by 20,000 yen per tonne for hot, cold and coated sheet for distributors for April shipment to cover higher cost for energy and raw materials including iron ore. With expectation for higher price, the buyers try to secure the materials before the price jump. The tight supply also contributes to the higher price. The integrated steel makers’ rolling schedule is getting tighter with strong demand for automobile. Some makers apparently reduce the order from distributors by more than 30% for April shipment compared with January-March level. Some dealers can secure only 30% of normal level. The supply is tight with limited availability for import materials.