Steel Plate Market Price Maintains Weak in Tokyo

Steel plate market price is weak at around 87,000 yen per tonne for standard sized products with 19 millimeters thick, 5 feet width and 10 feet length and at around 95,000-100,000 yen per tonne for cut processed materials in Tokyo. Dealers’ shipment maintains slow with stagnant demand from constructions. In addition, steel frame fabricators severely request price cut against plate dealers. The market price is likely to keep weak trend for a while.

New starts of large-size construction projects are relatively steady around Tokyo while middle- and small-size constructions keep very stagnant such for condominiums, factories and warehouses. Fabricators’ steel frame order receipts are decreasing. As a result, shearing processors’ order receipts are shrinking. Seasonal demand of public works, usually generating for January-March, is also unforeseeable. Plate dealers don’t expect for the recovery of domestic construction market in a short term.

Dealers have tried to minimize plate procurement volume for inventory adjustment. However, supply and demand balance seems not to tighten more. Some of plate makers are lowering their selling prices. The market price would follow the trend.