Flat Rolled Steel Market Price Gains 2,000 yen/t in Tokyo

Flat rolled steel market price increased by around 2,000 yen per tonne for hot rolled steel and pickling steel around Tokyo this week, which increased for 2 weeks in a row. The dealers reflected higher cost price. The dealers expect the market price would increase more when Japanese integrated steel makers would increase the price or cut the order from the dealers under potential short supply in metallurgical coal due to flood in Australia.

The market price is 65,000-67,000 yen per tonne for hot rolled steel and 74,000-76,000 yen for pickling steel.

The dealers’ flat steel inventory and order to be delivered from makers are apparently low level after the dealers reduced the order to the makers through December when the shipment was slow in late 2010. However, the dealers now try to secure hot rolled steel from other dealers expecting the price increase.

The spot price of iron ore and metallurgical coal are increasing. The spot prices increase more in April-June. Ferrous scrap price is also increasing. Tokyo Steel Manufacturing is expected to increase the steel selling price for order in January, which is announced early next week. The firm would increase the selling price by 2,000-3,000 yen per tonne for January order, according to market sources.