Weak Sheet Steel Price in Tokyo

Sheet steel market price is weak at around 67,000-70,000 yen per tonne for hot rolled flat steel around Tokyo. The price is likely to decrease more when the dealers try to liquidate high priced inventory with expectation for price cut by the makers.

The price level is 68,000-71,000 yen per tonne for pickling steel, 85,000-88,000 yen for cold rolled flat steel, 90,000-94,000 yen for hot rolled based coated steel and at around 100,000-104,000 yen for cold rolled based coated steel.

Some dealers expect the market price could hit bottom when some integrated steel makers reduce the selling price by around 10,000 yen per tonne for April-June shipment. However, many distributors and coil centers still try to liquidate the inventory and some dealers try to make cash toward end of fiscal year by selling the stock at lower price.

Some users improve the operation rate in March from very low production level before. However, many manufacturers are still in the middle of inventory adjustment. The users’ order to steel makers is expected to keep low level for months.