Pickled Steel Sheet Price Levels Off with Potential Decrease, Tokyo

Pickled steel sheet market price is flat with potential decrease at 66,000-68,000 yen per tonne for the base size around Tokyo. The makers keep high level outputs for automobiles when domestic car sales represent firm along with resumption of the governmental eco-car subsidy program. Domestic vehicle production increased by 131,090 units to 837,197 units in January from a year earlier and maintained year-to-year plus since October 2011. The ten-month accumulation since April 2011 totaled 7.33 million units and the yearly production is estimated to achieve 9 million units in fiscal 2011 ending in March.

Many dealer sources around Tokyo say the shipment of pickled steel sheet is not stagnant mainly related to healthy car sales. Domestic and overseas steel makers are likely to raise the sales prices of pickled steel sheet. However, it would be difficult for them to obtain approvals for the price hike from the users since raw material prices currently lowered. Dealers are cautiously watching actions of steel makers and pickled steel sheet users.