Japan Integrated Steels Likely to Down Plate Price by 15,000 Yen/t

Some of Japanese integrated steel makers are offering price down for steel plate to be sold for wholesalers in and after April, according to a plate dealer source. The makers seem to decrease their plate price by 15,000 yen to around 100,000 yen per tonne. Demand and supply balance of steel plate has rapidly loosened since late 2008. Plate makers are going to lower the price in fiscal 2009 started in April to reflect the loose demand and supply balance.

Plate demand has been impacted by global economy deterioration since last autumn. Order volume has largely shrunk for construction and industry machines. In construction market, large-size projects have decreased along slowdown of manufacturing industry’s capital expenditure. New orders for shipbuilders have also decreased by 10-20% year-on-year.

Steel plate market price is downward under loose supply and demand balance. International market price is currently $ 600-700 per tonne, almost half of 6 months earlier. In Japan, Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, set its plate selling price at 65,000 yen per tonne for April contracts. Tokyo Steel Manufacturing in advance lowered the price.

During fiscal 2008 ended in March 2009, plate market price surged by 30,000-40,000 yen per tonne to reflect high energy cost and supply tightness. The demand condition drastically changed and seems not to recover soon. Plate consumers, such as shipbuilders, construction and industry machine makers, strongly offer price cut.

Integrated steel makers seem to be forced to adjust their selling price not only for distributors but for large-lot customers, though a source of an integrated steel maker said they are in energy price negotiation and difficult to set the selling price at present.