Sheet steel market price increased by 1,000-2,000 yen per tonne around Tokyo after the coil centers tried to increase the selling price since late-April with better balance of inventory. The market price could increase more when the domestic steel makers are said to increase the selling price to cover higher raw materials cost though some distributors are still on the way to improve the selling price with slow demand. The market waits the price move by Tokyo Steel Manufacturing, which increased the flat steel price previous month and announces the monthly price on Monday. The market price increased after the inventory decreased with output reduction by integrated steel makers and lower import. The market also expects potential price hike by makers under higher raw materials cost while the market players focus on profitability more after April, when just after fiscal year closing month of March. The coil centers and distributors, some of which operate to lose money depending on the items, are expected to increase the selling price to improve the profitability though the market condition is severe for them when major steel users shift to central purchase of materials and distributors’ market shrinks. A trading firm source said at current cost price the distributors have to increase the selling price by 2,000-3,000 yen per tonne depending on items.
Japan Steel Scrap Composite Prices (Sangyo Press)
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