Plate Price to Decline More around Tokyo

Plate steel price would continue declining steadily from around 115,000 yen per tonne for standard size with 19 millimeter thick, 5 feet width and 10 feet length and around 135,000 yen for cut processed materials at the dealers’ sites around Tokyo while the demand slows.

The demand for cut processed material is at lower level due to the slow mid- and small- construction while the order for construction machine and industrial machinery plunges down. The operation rate of cut processors, of which main target is for construction machinery, is as low as 20-30% against capacity. A processor source said the shipment for spot user decreases more than 30% compared from a year earlier.

Standard size and mother board spot purchase are very slow and some dealers sell at less than 110,000 yen per tonne.

The supply gets easier since the demand decreases not only for spot but also for contract customers. The price would decline more because of inventory adjustment by dealers.