Hot Rolled Plate Price Rises by 1,000 yen/t in Osaka

Hot rolled steel plate price increased by 1,000 yen to 65,000 yen per tonne for products with 3.2 millimeters thick, 3 feet width and 6 feet length around Osaka. The distributors try to increase the reselling price when the inventory decreases both for coil and cut plate and the supply is expected to get tighter. The market price is likely to keep the trend when the makers are expected to increase the selling price lifting the distributors’ market. Domestic integrated steel makers export monthly 600,000 tonnes of hot rolled coil while their production keeps the high level at around 1-1.1 million tonnes. They reduce shipment for distributors to meet strong demand from domestic automobile and machinery industries. The import is low level when major makers in South Korea and Taiwan reduce the export to Japan and Chinese makers serve for firm domestic demand. Local distributors around Osaka got 68,200 tonnes of hot rolled sheet arrival from makers in October, which increased by 23% from September, according to local dealers’ group. The arrival is expected to decrease from the normal level in October. The inventory at processors decreased by around 3% or 5,000 tonnes to 112,000 tonnes at the end of October from September. The inventory is expected to decrease to 1.2-1.3 months of shipment in November from 1.5 months in October. Tokyo Steel Manufacturing increased the price of hot rolled cut sheet by 2,000 yen per tonne for December. The firm is expected to increase the price again in January. Nakayama Steel Works and other makers also try to find the timing to increase the price.