Pickled Sheet Price in Weak Tone around Tokyo

Pickled steel sheet market price is weak at 62,000-64,000 yen per tonne around Tokyo. Averaged operating rate of Japanese coil centers currently exceeds 70%. But the recovery is delayed around Tokyo compared with Nagoya, Hiroshima or Kyusyu where automotive industry is concentrated.

New starts of building and housing construction (by floor space) decreased in October, which lowered for 12 consecutive months. Especially, non-housing construction floor space dropped largely. Low building demand makes an impact to the demand for steel furnitures or appliances.

Meanwhile, the demand for building construction is seasonally increasing toward January-March. Steel sheet demand also shows a recovering sign from construction and industrial machines.

Pickeled sheet market price had leveled off but rapidly declined for one week to reflect strong price cut requests from the users and the weak market of hot rolled sheet.