Steel Plate Market Price May Turn Upward in Tokyo

Steel plate market may turn upward in Tokyo after summer, which maintains stagnant so far. Gradual demand recovery is expected for construction materials such for bridges before the half year from September 2006, which stays low at present, while the demand has kept active for manufacturing industries such as shipbuilding, construction and industrial machines. Rolling lead time for steel plate would become much longer at Japanese steel makers with the demand recovery. Maker source says the rolling lead time is already lengthening to about 60 days from previous 45 days. Supply tightness could stimulate the market price of standard sized plate and processed plate.Inventory volume at Japanese shearing processors was 520,000 tonnes at the peak in July 2005 and decreased to around 460,000 tonnes in March 2006 thanks to inventory adjustment, according to Japan Steel Plate Shearing Industrial Guild. The inventory is approaching to 450,000 tonnes which is said the appropriate level. There is no surplus feeling in the market.The market price of standard sized plate and processed plate keeps flat with the weak tone so far, when the users strongly request the price reduction, though steel makers sustain their selling price of material plate. Shearing processor source supplying construction materials said the profitability is at the bottom at present. However, both the market price and the demand could improve soon.