Weak Colored Galvanizing Steel Price in Tokyo

Colored galvanizing flat steel market price is weak at 260,000 yen per tonne for smaller coil with 35 millimeters thick and 914 mm width and at 234,000 yen for larger coil around Tokyo. Dealers are requesting the price cut to colored sheet makers, but colored sheet makers are resisting the request because hot rolled steel sheet price doesn’t change. Users are requesting the price cut to dealers.

Dealers’ selling volume decreased by 30% in March from a year earlier.

Dealers expect Japanese integrated steel makers reduce hot rolled steel price and colored sheet makers reduce the selling price of colored sheet from May. However, dealers’ purchase price hasn’t decrease at the present day. Some dealers are decreasing the selling price by 20,000-30,000 yen compared with other major dealers when the demand keeps low in near future.

Dealers are reducing the purchase volume, but their inventory adjustment is running late due to decreasing shipment. Dealers’ shipment is expected to keep low when users are continuing to hold off the buying due to inventory adjustment and anticipation of a fall for the sheet price.