Weak Flat Rolled Steel Price in Tokyo, Osaka

Cold rolled steel sheet market price would decrease from 79,000-81,000 yen per tonne around Tokyo. The market sources see the demand could increase for automotive parts when the parts output could increase in Japan due to flood in Thailand.

However, the dealers would not build up the inventory when iron ore spot price and ferrous scrap export price are decreasing. Japanese steel sheet inventory for domestic shipment held by the makers, dealers and member of Japan Coil Center Association would be high at more than 4 million tonnes at the end of September. The dealers’ shipment would remain low.

Hot rolled flat steel market price would decrease around Osaka when Tokyo Steel Manufacturing reduce hot rolled coil selling price by 5,000 yen per tonne for November order. The market price is 62,000-63,000 yen for 3.2 millimeters thick, 4 feet width and 8 feet length.

Integrated steel makers, Tokyo Steel and Nakayama Steel Works reduce the steel sheet supply to meet the demand. The monthly import is low at 120,000-130,000 tonnes. However, the inventory adjustment delays due to weak demand.