Plate Market Price Maintains Weak, Tokyo

Steel plate market price is weak due to low demand around Tokyo. The price is around 87,000 yen per tonne for standard size with 19 millimeters of thickness, 5 feet of width by 10 feet of length and around 95,000-100,000 yen per tonne for cut plate. Dealers’ shipment maintains very stagnant for steel frames, one of the main applications.

Fabricators had held a certain volume of order backlogs until early autumn. However, there remains few order backlogs at present because new housing starts and private sectors’ investment maintain stagnant for a long term. As a result, there are few orders for cut plate.

Meanwhile, cut plate orders seem recovering for construction machines after inventory adjustment by construction machine makers progressed. The demand volume still stays 40-50% level compared with April-September 2008 despite of the rebound.

Shearing processors’ plate inventories are decreasing when they are minimizing procurement volume from makers. However, the market inventory still remains surplus due to stagnant shipment, especially for standardized products for constructions. Plate users continue to offer price cut.

Steel plate market is likely to keep weak tone for a while.