Weak Plate Steel Price in Tokyo

Plate steel market price is weak at around 95,000-100,000 yen per tonne for product with 19 millimeters thick, 5 feet width and 10 feet length and around 110,000 yen for cut processed plate around Tokyo. The price is likely to keep decreasing under very slow demand.

The building demand is very slow, especially for mid- and small-sized condominium and other buildings while the demand is relative firm for some major building projects. The private building activity is very slow under the slow economy and loss making business condition. Some shearing processors for construction and industrial machinery operate at around 20% of the capacity. The demand shows no sign to recover and the processors’ operation could keep very low level.

The dealers’ inventory decreases when they reduced the order to the makers. The overstock is getting normalization but the inventory is still high for the slow demand. The slow demand and higher inventory could pressure on the market price.