Weak Steel Sheet Price and Strong Steel Plate Price in Tokyo

The market price of steel sheet was unstable in Tokyo in January-June, which weakened by spring, rebounded around the long holiday period in early May and weakened again recently. Japanese integrated steel makers maintained their selling prices. However, the reselling prices were unstable at dealers watching the overseas market conditions especially Chinese market and the weak market in Tokyo due to the output reduction by Nissan Motor.

Integrated steels source prospects Japanese automobile production could exceed 10 million units in fiscal 2006 ending March 2007 and achieve near 11.5 million units as the sum total of Japanese automakers output plans. However, the auto production is active at Toyota Motor, Suzuki Motor and Mazda Motor whose plants locate in western Japan and the production is slow at Nissan Motor around Tokyo. Steel sheet market price is expected to fluctuate around the current level for a while under the situation.

On the other hand, steel plate supply is rapidly tightening in the market and expected to become even tighter in autumn. The demand maintains strong for manufacturing industries such as shipbuilding, construction or industrial machines. The orders also recovered for steel beam and cut sheet for bridges. Steel plate inventory is decreasing at shearing processors around Tokyo with the high demand.

The distributors are seeking higher reselling prices with expectation steel plate supply could tighten more. The market price is likely to increase gradually.