Firm Sheet Steel Price around Tokyo

Market price of sheet steel is increasing around Tokyo. The price is 67,000-69,000 yen per tonne for hot rolled steel, 75,000-77,000 yen for pickling steel and 80,000-81,000 yen for cold rolled steel. The inventory adjustment is progressing when distributors have some stock out sizes for some items under lower inventory and decreasing and delaying import. The coil centers try to increase the reselling price under the improving supply balance. The market is getting into upward trend. Japanese integrated steel makers are expected to increase the selling price when prolonged iron ore price negotiation is closing and surging zinc price pressures their production cost. The market price is likely to keep firm though the distributors’ shipment is still slow when major users including automakers shift to central purchasing and building demand is slow.