Steel Sheet Price Drops by 1,000-2,000 Yen/t around Tokyo

Steel sheet market price decreased by 1,000-2,000 yen per tonne last week around Tokyo. Hot rolled sheet price became below 60,000 yen for the first time in 5 years. Hot sheet price is rather decreasing than other sheets under dealers’ tough sales competitions. Demand keeps stagnant for building materials. Other sheet prices also declined to follow hot sheet price.

The market price is 58,000-59,000 yen for hot rolled sheet, 61,000-63,000 yen for pickled sheet, 74,000-76,000 yen for cold rolled sheet, 87,000-88,000 yen for electrogalvanizing sheet based on hot sheet, 97,000-98,000 yen for electrogalvanizing sheet based on cold sheet, and 87,000-89,000 yen for hot dipping sheet.

Hot sheet and hot dipping sheet prices lowered due to stagnant demand for building materials. Pickled sheet and cold sheet prices is also decreasing despite of steady demand from automobiles and electric appliances.

Domestic order receipts for machines decreased by 4.5% to 704.5 billion yen from private sectors except for ship and electric power in October compared with September. The order receipts downed for the first time in 3 months. The demand is expected to maintain stagnant from construction machines and industrial machines with manufacturing industry’s slow investment.

Some large dealers are withdrawing from low-price sales those who were suffered from the red. A large dealer source said their sales don’t increase even though they reduce the reselling price.