Sumikin Bussan Raises Mid-sized Plate Price

Sumikin Bussan Corporation, Japanese large steel trader, raised the selling price of mid-sized steel plate for December. The firm announced the hike in November and aims to achieve it fully in December for better profitability.

Mid-sized plate supply is much tightening with the strong demand when inflow of import products decreased and distributors around Tokyo reduced the purchase in summer. Coil center source said coil centers’ inventory is low.

Distributors such as coil centers are likely to follow the price hike for mid-sized plate. Secondary and third distributors could not pass the increase of cost price on their reselling prices enough so far under influence of purchase integration by large users. Mid-sized plate market price is expected to become stronger in near future. Mid-sized plate market would stimulate hot-rolled steel sheet and pickled steel sheet markets as well.

Hot-cut sheet market price reached the top at 90,000-92,000 yen per tonne around Osaka. Distributors cannot raise their reselling price due to weak order reception though material plate supply is decreasing. The market price seems to keep flat within this year.

Integrated steel makers continue full operation. Their shipment is active for export, shipbuilding, large-sized steel pipe and large construction projects, while integrated steels are reducing the shipment to some domestic processors. South Korean and Taiwanese makers are reducing export to Japan. Japanese quay inventory is thin.