SC steel market price decreased by 5,000 yen to 115,000 yen per tonne this month due to weak demand around Osaka. The demand is steady for automobiles while hasn’t rebounded for construction machines and industrial machines. The market price is expected to keep weak tone for January-March.
The demand for automobiles rebounded to 70% from peak level thanks to the governmental stimulus measure. SC steel shipment is also rebounding for construction machines but machine makers’ orders haven’t increased for large diameter SC steel since component inventories still remain in the market. Positive factors are that supply and demand balance is being improved and that ferrous scrap price seems to have hit bottom. However, a dealer source said they are accepting orders at low prices due to unforeseeable demand condition for next year. Dealers’ inventory adjustment almost completed but the supply and demand isn’t so tight.Japan Steel Scrap Composite Prices (Sangyo Press)
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