Weak Plate Steel Price in Tokyo

Plate steel market price keeps flat with weak tone around Tokyo. The market price is around 90,000-95,000 yen per tonne for standard sized products with 19 millimeters thick, 5 feet width and 10 feet length while around 110,000 yen for cut processed materials. The demand maintains stagnant, expected not to recover in a short term for building materials, construction machines and industrial machines.

Construction of small-middle size buildings has decreased though the demand for seismic strengthening construction is firm. Private companies are reducing investment. Public projects are postponed. The demand for plate is unexpected to recover within the last half of fiscal 2009 ending in March 2010.

Construction machine makers advanced inventory adjustment. The demand hit bottom for construction machines in East Asia. However, shearing processors’ operating rate has lowered by around 70% for construction machines since last autumn. Operation recovery would take a time.

Dealers advanced inventory adjustment but they can’t raise the reselling price due to low demand.