Stainless Plate Price to Drop Gradually around Tokyo

Stainless steel plate market price is sliding cheaper at 280,000-300,000 yen per tonne for SUS304 hot rolled coil cut plate with 3-6 millimeters thick and 440,000-460,000 yen for plate mill products with 7-14 mm thick around Tokyo. Dealers’ inventory adjustment seems to take more time. Dealers’ shipment is stable for specific users while trading among dealers maintains slow.

A major dealer source said their shipment dropped in April and May while recovered in June compared with May. The shipment is expected to maintian low for domestic dealers until autumn, he said. Another dealer source said the demand is increasing from vacuum chamber for liquid crystal television and manufacturing equipment of solar battery and floodgate.

Shearing processors’ inventory of hot rolled products decreased to 33,700 tonnes in May but the inventory rate increased to 5.9 months for shipment. Their sales continued to decrease from November, which decreased by over 50% in May from November 2008. A major dealer said the inventory of some size products run short if the sales recover.

On the other hand, the demand is recovering at overseas such as seawater desalination unit and chemical plant in Middle-East, solar battery equipment in Europe or nuclear paraphernalia in China. Japanese stainless steel makers’ export is increasing.

Nickel price stays at US$ 6.5-7 per pound in June. It is certain that stainless makers raise their plate selling price uner surcharge system of material prices.