Steel Sheet Market Price Maintains Weak, Tokyo

Steel sheet market price maintains weak around Tokyo to reflect low demand and excess inventory. Market inventory of hot rolled, cold rolled and surface treated steel sheet totaled 4.2 million tonnes at the end of June though the moderate level is generally said at 3.4-3.5 million tonnes. Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, currently decreased its scrap purchasing price. Thus the firm may lower its steel sheet selling price for September.

Japanese coil centers’ shipment decreased to below 1 million tonnes in April and May when manufacturing industry was forced to cut production and large building projects were postponed or suspended after Japan Earthquake. Steel sheet market price temporarily rose from late March to early April due to speculative demand and supply shortage. But the price turned to gradual downtrend.

Integrated steel makers and Toyota Motor currently agreed in steel sheet price hike by 13,000 yen per tonne for the shipment in the first half of fiscal 2011 (April-September 2011). Steel makers could not pass cost upsurge fully. Steel makers seem to offer price hike in the latter half of fiscal 2011 when spot prices of iron ore and coal maintain high level.

On the other hand, steel sheet users are also suffered from strong yen trend and low domestic demand. The users are strongly resisting against the price hike by steel makers and dealers.