Weak Plate Steel Price in Tokyo

Plate steel market price is weak at 105,000 yen per tonne for product with 19 millimeters thick, 5 feet width and 10 feet length and at 110,000-120,000 yen for products with cutting process around Tokyo. Dealers’ sales maintian low for buildings, construction machines and industrial machines. Plate trades among dealers are also stagnant. Dealers’ sales volume is more than halving this month compared with November 2008.

Dealers’ inventory volume expanded by around 50% in May compared with November 2008. Inventory adjustment is delayed despite of dealers’ efforts to hold off plate orders to makers. Many dealers expect inventory adjustment cannot finish by this autumn.

It is unclear whether domestic plate makers change the selling price for dealers. The market price of cut-processed plate is below the material plate price. The market price is expected to keep weak tone under oversupply condition.