Weak Colored Galvanizing Flat Steel Price in Tokyo

Colored galvanizing flat steel market price is weak at around 260,000 yen per tonne for small coil with 0.35 millimeters thick and 914 mm width and at around 234,000 yen for large coil around Tokyo. Some dealers reduce the reselling price by 3,000-10,000 yen when the makers reduce the selling price. The market price could decrease more when iron making materials’ major price cut would reduce steel price.

The makers and dealers try to reduce the overstock. However, the inventory adjustment could take more time for normal level when the demand drop is more than production cut and dealers’ purchase volume cut. The dealers’ profitability would get worse depending on the iron making raw materials situation when the hot coil and galvanizing steel price keep the high level.

The makers reduce the production by around 30% of the capacity. However, the production cut seems not enough to the demand drop when the inventory is still higher level for the demand. The new price for hot coil could encourage the buyers’ purchase activity. However, the price and demand is still uncertain. Overstock could be burden for price adjustment immediately by the makers and dealers while the buyers would increase the price down pressure.