Strong Plate Price in Tokyo

Plate market price is strong at 82,000 yen per tonne for standard size with 19 millimeters thick, 5 feet width and 10 feet length and at 100,000 yen for cut processed materials around Tokyo due to tight supply and makers’ price hike despite of slow shipment. The dealers raised the selling price when makers increased the selling price from October contract. Dealers try to pass the higher cost price on the market when they got arrivals of high priced materials from makers.The supply was tight when makers reduced the acceptance of the order by 20-30% from the last half of fiscal 2007 at the ended of March 2008 compared with the first half of fiscal 2007. Dealer inventory of standard products is decreasing. Especially, some size of the products with over 12 millimeters thickness was short.Dealers’ inventory decreased to 116,548 tonnes by 3.6% at the ended of October from last month, according to dealers’ association. The inventory rate decreased to 118.6% of shipment per month by13.8% points. Inventory volume and rate decreased in 3 months for the first time. The supply and demand is tighter due to strong demand for shipbuilding, construction machine or industrial machine.Meanwhile, the demand for building material keeps low due to the delay of small-middle size building construction by the revision of Japanese building standard law.