Market price of coated steel is decreasing at 90,000-91,000 yen per tonne for electro-galvanizing steel based on hot rolled steel in distributors market in Tokyo. The price could decrease more with no positive factor both in supply and demand though the market expects the price is reaching the bottom.
The demand is firm for processing and sales of steel service centers for automobile when the automobile output is peak in January-March. The confidence depends on automakers and automobile models. The demand is still slow for distributors’ market. The market players expect the slow demand continues in and after April. The inventory adjustment is still middle of the way and the market expects the adjustment finishes and the positive mood appears in May or June. The cheaper imported coil impacts on the domestic market especially for construction materials. The imported coil price is 6,000-10,000 yen per tonne cheaper than domestic materials. The distributors concerns the wide gap between high-valued and commodity grade products continues and has negative impact on the high-valued products.Japan Steel Scrap Composite Prices (Sangyo Press)
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