Plate Steel Price to Increase in Tokyo

Steel plate market price could increase more from 82,000 yen per tonne for standard size with 19 millimeters thick, 5 feet width and 10 feet length around Tokyo despite of the slow building demand. The dealers try to pass higher cost price on the market after makers’ 3,000-5,000 yen hike. The dealers’ market experiences slower demand due to delayed building activity while the demand is strong for construction machinery. The plate inventory held by distributors around Tokyo was 120,839 tonnes at end of September, according to Japan Steel Plate Shearing Industrial Guild. The stock was 1.32 months for the shipment. The stock increased since July and the dealers feel the stock has room to reduce. Domestic plate makers cannot increase the supply for distributors when the makers try to secure the supply volume for shipbuilders and machinery makers. The dealers reported some stock out sizes especially for 9 mm or more thick sizes. The dealers already increased the offer price to more than 100,000 yen per tonne to improve the profitability with higher priced materials. The price improve effort could take more time but supports the market price.