Dropping Sheet Steel Price in Tokyo

Sheet steel market price is weak when coil centers or dealers try to liquidate the inventory toward fiscal yearend even at loss making price due to slower demand for automobile appliance or building material. The market price is around 65,000-67,000 yen per tonne for hot rolled flat steel, 65,000-68,000 yen per tonne for pickling steel, 83,000-85,000 yen for cold rolled flat steel, 88,000-91,000 yen for hot rolled based coated steel and at around 98,000-101,000 yen for cold rolled based coated steel around Tokyo. Some dealers are selling at below 60,000 yen per tonne for pickling steel, below 80,000 yen.

Dealers’ shipping keeps low, which decreased by around 40% from the same period of last year.

Market inventory isn’t decrease. Japanese steel sheet inventory for hot rolled, cold rolled and coated steel sheet was highest at 4.73 million tonnes at the ended of January, which exceed by over 1 million tones compare with decent level at 3.7 million tonnes when coil centers and dealers’ selling volume decreased by around 50% compared with the same period of last year.

Some integrated steel makers decreased the selling price of steel sheet for dealers by around 10,000 yen per tonne for the shipping in April-June, which are expected to additionally decrease. However, integrated steel makers have some problem for increasing production cost for output reduction or high material price. A maker source said steel makers slightly reduce the selling price in April-June, and considerably reduce after July.