Japanese Sheet Price Increases by 2,000 yen in Tokyo

Japanese steel sheet market price increased by 2,000 yen per tonne around Tokyo last week. The market price is 60,000-61,000 yen for hot rolled flat steel, 66,000-68,000 yen for pickling steel and 76,000-78,000 yen for cold rolled flat steel. The hot rolled price increased to more than 60,000 yen for the first time in 3 months. The price increased when the inventory adjustment progressed and the dealers’ stock gets low level for some sizes. The sheet market price would increase more under the supply side pressure.

Nippon Steel announced in late February the firm increases the sheet price by 15,000 yen per tonne for the dealers for April shipment. The dealers planned to increase their reselling price at that time. However, some dealers were concerned that the price would not increase by 15,000 yen under very slow demand. The price was flat for a week after the announcement.

However, JFE Steel and Kobe Steel announced they increase the price by 15,000 yen per tonne. Sumitomo Metal Industries and Nisshin Steel seemed to notify the price hike intention to the dealers. The dealers try to increase the reselling price and some dealers avoid lower priced sales with expectation for higher reselling price.

Domestic integrated steel makers reduce the supply to the dealers when they try to meet strong demand for export and automobile industry. The makers would increase the sheet price more depending on raw material price negotiation.