Hot Sheet Market Turns to Downtrend in Tokyo

Hot rolled steel sheet market turned downward around Tokyo when sales competition became severer among local dealers due to their slower shipment. The market price is unlikely to decreases largely because Japanese integrated steel makers and Tokyo Steel Manufacturing, Japanese biggest electric furnace steel maker, keep their selling prices. However, dealers’ sales conditions are expected to continue severe with market stagnancy. Sheet steel market price is 68,000-69,000 yen per tonne for hot rolled sheet and 74,000-76,000 yen per tonne for pickling sheet around Tokyo.Dealers’ shipment maintains stagnant even though there seems some signs to improve for building applications. Coil centers’ operating rate is gradually lowering in the region due to lower production of Nissan Motor. Market inventory for hot, cold and coated sheet increased to total 4.19 million tonnes in Japan at the end of May. The supply and demand balance is loosing.Integrated steel makers expect steel sheet demand keeps steady for manufacturing industries such for automobiles or electronic products, while keep cautious for order reception volume from dealers and distributors when the market inventory increased. Most dealers and coil centers will keep their reselling prices. However, the market is weakening as total under the severe sales competition.