Strong Hot Sheet Steel Price in Tokyo

Hot-rolled steel sheet market price is increasing around Tokyo. The supply is tightening. The stock out sizes are increasing in dealers’ inventories. Tokyo Steel Manufacturing raised the selling prices of steel coil and cut sheet by 3,000 yen and Asian steel makers are also increasing their selling prices including for Japan. Dealers are trying to raise their reselling prices after the makers’ hikes. Sheet steel market price is 68,000-69,000 yen per tonne for hot rolled flat steel at coil centers’ selling price around Tokyo. Hot-rolled steel coil supply is tight when the demand keeps good for manufacturing industries. Japanese quay stocks of imported flat steel stay below 300,000 tonnes around Tokyo since September 2006, according to Hanwa Co. Large dealers and coil centers have raised their reselling prices gradually since autumn 2006. They achieved the hike of 3,000-4,000 yen per tonne so far and try to another hike by about 2,000 yen per tonne this month. The market prices of pickled sheet and cold-rolled sheet don’t increase as much as hot sheet. Some sources said pickled and cold sheet prices are relatively low for large contract users such as automakers. Hot sheet market price is approaching to pickled sheet price, while cold sheet market price is partly higher than cold cut sheet.