Weak Sheet Steel Market Price in Tokyo

Sheet steel market price is weak around Tokyo. The demand maintains seriously low with inactive building constructions and decreasing automobile outputs. Some dealers offer cheap reselling prices to secure running cost. Dealers’ price competition is getting tough. The market price is 59,000-63,000 yen per tonne for hot rolled flat steel, 69,000-72,000 yen for pickling steel sheet, 82,000-85,000 yen for cold rolled sheet, 91,000-94,000 yen for hot coil based electrogalvanized steel, 101,000-104,000 yen for cold coil based electrogalvanized steel and 91,000-94,000 yen for hot dipped galvanized steel sheet.

Japanese inventory of hot, cold and coated sheet decreased by 0.9% to 3.81 million tonnes at the end of October from a month earlier. The inventory decreased for the first time in 3 months. In a past decade, the inventory tend to have decreased by average around 70,000 tonnes at the end of September but this year the inventory decreased only by 40,000 tonnes.

Dealers’ sales volume increases in the demand season of September-November but some dealers say the orders don’t increase typically this year. Japanese integrated steel maker source said the autumn demand is unexpectedly low and steel makers should adjust output with actual demand. Especially, the inventory ratio of hot rolled sheet is rising month by month.

Japanese steel export is also concerned to slow down for Asia. Asian steel market price maintains weak and strong yen impacts Japanese exporters’ profitability, despite of firm steel demand in emerging countries. Japanese integrated steel makers and electric furnace steel makers are increasing sales to domestic dealers and coil centers to cover sales decrease for automobile and export. Dealers are trying to minimize stocks and orders. The supply and demand balance requires substantial time to improve.