Strong Flat Rolled Steel Price in Tokyo, Osaka

Pickling steel market price would increase from 74,000-76,000 yen per tonne around Tokyo. The dealers increased the purchase volume since the beginning of the year when the makers announced price hike. However, the price increase mood in the market is slower than before when Tokyo Steel Manufacturing announced price hike only by 2,000 yen for February while the dealers expected significant price increase. The market price is likely to keep increasing even at slower pace when the speculative buying stopped and the order are decreasing to normal level.

Flat steel demand is firm when the output of the manufacturing usually increases in January-March. The dealers’ shipment is firm especially for picking steel when the automobile makers increase the output thanks to launched new models. The supply gets tighter gradually when the steel makers closed the order book for immediate shipment. The dealers try to increase the selling price expecting steel and ferrous scrap price increase after Chinese New Year holiday.

Hot rolled steel sheet price is gradually increasing from 63,000-65,000 yen per tonne around Osaka. The dealers are increasing the selling price when the shipment is firm.

The makers reduce the supply for domestic dealers when the steel makers’ output is at high level mainly for the export. The sheet supply to domestic dealers and processors is low level when the import remains low at 120,000-130,000 tonnes per month. The dealers’ procurement volume for standard sized sheet when the coil centers reduce the sheet processing for dealers. The dealers report lower inventory and thin stock for some sizes.

The steel sheet demand is increasing for industrial machinery and construction machinery. The dealers aim to increase the selling price more.