Plate steel market price is decreasing at around 95,000-100,000 yen per tonne for standard sized products with 19 millimeters thick, 5 feet width and 10 feet length and around 110,000 yen for cut processed materials around Tokyo. The demand maintains weak from building materials, construction machines and industrial machines. Dealers’ shipment is very low. Dealers’ sales are expected to stay at the bottom. The market price could drop more.
Dealers and shearing processors hold plate inventory for 3 months of shipment. Inventory adjustment takes time though the increasing trend settled down. Their inventory maintains higher level by double compared with decent level. There are few new building construction projects for condominiums or factories. The export of construction and industrial machines is increasing to China but machine makers’ inventory adjustment seems to require more time. Shearing processors said the demand for machine components or materials would hit the bottom after the beginning of next year at the earliest. The demand for plate is expected to keep low for a long time.Japan Steel Scrap Composite Prices (Sangyo Press)
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