Steel Plate Market Price Continues to Lower in Japan

Steel plate market price continues to decline in Japan. The current market price is around 87,000 yen per tonne for standard sized plate with 19 millimeters of thickness, 5 feet of width by 10 feet of length around Tokyo. The price lowered by about 5,000 yen compared with September. Around Osaka, cut plate market price is weak at 90,000-92,000 yen per tonne. Some shearing processors offer below 90,000 yen.

Distributors’ shipment volume of standard-size plate is decreasing by 30% compared with a year ago level in Tokyo. In construction market, there are few middle- and small-size projects. The demand is also decreasing from civil engineering projects.

In Osaka market, price competition is very severe among shearing processors with little demand. The current reselling price is completely unprofitable in comparison with plate makers’ selling price of material plate. Shearing processors cannot sustain the reselling price to secure certain volume orders.

Wholesalers’ cut plate shipment recovered to 50% level for construction machines while stays 20-30% level for industrial machines around Osaka. The demand is also weak from constructions and bridges. Operating rate is 60-70% at large shearing processors and 40-50% at middle and small processors.

Plate market price hasn’t hit the bottom. Most of shearing processors are in the red but they cannot improve the price level to secure order volumes. The price would continue to be downward.