Steel Plate Market Price Keeps Flat around Tokyo

Steel plate market price keeps flat at 88,000 yen per tonne for the size with 19 millimeters of thickness and at 98,000-100,000 yen for cutting sheet around Tokyo. Wholesalers’ sales maintain weak mainly for building construction field. Dealers are facing difficulties in the reselling price hike as well as in the order acceptance under severe price cut.

Steel plate orders have been weak from building construction field due to economic stagnation. The order level hasn’t recovered to the pre-disaster level in June. The demand related to restoration and reconstruction in disaster areas is estimated to increase in 3Q 2011 or in 2012.

Dealers’ shipment decreased month by month after the mega earthquake. The shipment decreased by 9.1% to 160,835 tonnes in April from March and downturned for the first time in 3 months, according to Japan Steel Plate Shearing Industrial Guild. The inventory increased by 1.7% to 370,936 tonnes, increasing for 5 consecutive months.

Meanwhile, steel plate orders from construction and industrial machine industries kept relatively stable even after the disaster. The users didn’t stop orders for cut sheet mainly due to a concern on material shortage, according to a dealer source. Construction and industrial machine productions are expected to increase.

Japanese integrated steel makers’ plate price for dealers maintains higher than electric furnace steel makers’ price when the demand is firm for export, shipbuilding, construction and industrial machines as well as raw material costs are rising. Dealers are cautiously watching the price gap. The market price of integrated steel makers’ products shows a sign to be pulled down by electric furnaces’ products.