Decreasing Plate Steel Price in Tokyo

Plate steel market price continues to decrease around Tokyo when dealers’ shipment keeps slow along weak demand. Dealers reduce the reselling price for inventory adjustment. The current market price decreased by 5,000-10,000 yen to 105,000-110,000 yen per tonne for product with 19 millimeters thick, 5 feet width and 10 feet length compared with early March and by 15,000-25,000 yen to 110,000-120,000 yen per tonne for cutting process product. The demand is unlikely to recover soon and the market price would decrease more.

Dealers’ sales volume is decreasing by 50% over the previous year when the demand keeps low for building materials, construction machines and industrial machines. Plate inventory held by shearing processors increased by 25.7% to 142,448 tonnesat the end of February from a year earlier around Tokyo, according to Japan shearing processor association. The inventory rate rose by 7.6 percentage points to 234.9% against the shipment, which kept over 200% since December 2008.

Steel makers, mainly integrated steels, keep plate selling price at high level for dealers. However, makers are under pressure to adjust the selling price for both dealers and specific users to follow demand shrinkage. Tokyo Steel Manufacturing, Japanese major plate maker, decreased the selling price to 65,000 yen per tonne for April contracts in advance.