Flat Rolled Steel Market Price May Hit Bottom around Tokyo

Flat rolled steel market price is flat around Tokyo. The dealers expect the price would stop decreasing due to lower sheet steel inventory and strong demand for automobile.

The market price is 59,000-61,000 yen per tonne for hot rolled flat steel around Tokyo. The price is 66,000-68,000 yen for pickling steel, 76,000-78,000 yen for cold rolled flat steel, 86,000-88,000 yen for electrogalvanized steel based on hot rolled flat steel and 87,000-89,000 yen for hot dipped galvanized steel.

The demand is increasing for automobile due to Japanese government’s subsidy for eco-friendly car purchase. The automakers could keep high level production through first half of fiscal 2012 started April due to better yen rate for their export and new models in the period.

Operation rate of national coil center association’s members hit more than 80% in February, which was first 80% level since October 2008. The rate would keep high level to meet the automakers’ output.

Some makers seek higher flat steel selling price for the dealers to improve their margin while some dealers see the reselling price cannot increase. The price could increase after Japanese inventory decreases to less than 4 million tonnes.