Weak Steel Plate Market Price in Tokyo and Osaka

Steel plate market price is weak around Tokyo at 84,000 yen per tonne for the size with 19 millimeters of thickness and 5 x 10 feet of width, and at 95,000 yen per tonne for cut plate. Wholesalers’ small-lot shipment maintains low though there are large building construction projects around Tokyo. The market price is likely to edge downward within this year along with cheap prices of electric furnace steel makers and imports.

Total demand has recovered since November. Major shearing processors’ operation rate has improved for building materials while middle- and small-class shearing processors’ operation keeps low. One dealer source said operating rate at small- and middle-class processors would improve in January-March.

Tokyo Steel Manufacturing may raise its plate selling price for January contracts to reflect ferrous scrap price upsurge. Another dealer pointed out wholesalers should spend efforts to gain profits by processing services, not relying on steel makers’ hike.

Around Osaka, steel plate market price is also weak at 79,000-80,000 yen per tonne for the size with 19 millimeters of thickness and 4 x 8 millimeters of width. Some dealers have lowered the reselling price for the products of electric furnaces.

Integrated steels are reducing plate sales to dealers. Meanwhile, Tokyo Steel lowered the selling price of plate by 5,000 yen per tonne in December and Nakayama Steel Works shows flexibility for the users’ offer prices. Import arrivals keep relatively high volume at approximately 30,000 tonnes per month. Local market inventory seems surplus.