Coil centers seem to be likely to raise the selling price of middle thick hot rolled steel sheet by 2,000-3,000 yen per tonne as soon as within May around Osaka. They will start to improve the profit when their inventory adjustment mostly was completed and steel sheet makers’ supply of hot rolled coil is reduced for dealers by a large margin due to explosion accident of Tokyo Steel Manufacturing’s Okayama works.
Middle thick sheet market price keeps flat at 57,000-60,000 per tonne for the size with 3.2 millimeters thick after April around Osaka. Coil centers had been decreased the selling price until ended March for inventory adjustment, but stopped declining selling price from April. However, the demand is low for building material and machinery around Osaka. Dealers couldn’t raise the selling price of middle thick sheet when users and secondary dealer were short an ambition to buy it. Consequently, the market price was flat in April around Osaka. Hot rolled black sheet inventory rate of coil centers decreased to 1.2-1.4 months against shipping in May. Their inventory adjustment was completed. Imported products inventory became short in Osaka bay area. Because Tokyo Steel Manufacturing held off the sales of hot rolled sheet due to the accident of Okayama works, the supply is expected to become tight for dealers. The market price is expected to rise when users are likely to take up dealers’ price hike due to low inventory.Japan Steel Scrap Composite Prices (Sangyo Press)
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