Strong Plate Price in Tokyo

Plate steel market price is strong at 85,000 yen per tonne for base size with 19 millimeters thick, 5 feet width and 10 feet length around Tokyo, which is likely to approach 90,000 yen. Some dealers raised the selling price of standard size plate by 3,000 yen per tonne in February from January.Japanese integrated steel makers are likely to raise the selling price of plate by 15,000-20,000 yen per tonne for dealers due to increasing material and fuel costs. Dealers will raise the reselling price step by step.The demand keeps slow. The plate inventory held by distributors around Tokyo decreased by 0.3% to 115,850 tonnes at the end of December from a month ago, according to Japan Steel Plate Shearing Industrial Guild. The stock increased to 1.296 months for the shipment, up by 9.4 percentage points due to decreased shipment. Dealer source said the inventory keeps the same level or slightly decreases in January from December.The demand is strong for shipbuilding, construction machinery, industrial machinery or big building project. The supply is expected to be tighter in January-March. The supply volume is decreasing for dealers.The dealers’ market experiences slower demand due to delayed building activities while electric furnace steel makers are likely to raise the selling price of plate. Dealers are expected to continue the price hike.