Steel Sheet Price to Increase around Tokyo

Steel sheet price is increasing around Tokyo. The coil centers and dealers aim to increase the reselling price and offer when Tokyo Steel Manufacturing increased the price for 3 months in a row and import steel price increases. The demand is improving for industries while the construction demand remains low. However, the market price is likely to increase.

The market price is 62,000-64,000 yen per tonne for hot rolled flat steel, 64,000-66,000 yen for pickling steel and 75,000-78,000 yen for cold rolled flat steel. The price of electrogalvanized steel sheet is 86,000-88,000 yen for hot rolled based products and 95,000-98,000 yen for cold rolled based.

Domestic steel sheet inventory held by makers, dealers, and members of Japan Coil Center Industry Association was 3.39 million tonnes at end of July, which was the lowest level. The Coil centers and dealers have some stock out sizes for pickling and cold rolled flat steel. Additionally, the processing volume of coil centers hit more than 1 million tonnes in July for the first time in 7 months when the demand is improving. One market source pointed out integrated steel makers increase the supply for export and the dealers cannot purchase sheet steel at lower price as before.

However, the demand for construction and industrial machinery industry, which is the main buyers for the dealers, remains low. One coil center source said the inquiries from users are fewer while the transaction between the dealers shows sign to increase.