Rising Plate Price in Tokyo

Plate market price is increasing gradually at around 120,000 yen per tonne for product with 19 millimeters thick, 5 feet width and 10 feet length and 145,000 yen per tonne for cut processed material around Tokyo. The shearing processors increase the plate reselling price by 5,000-7,000 yen from late August when the makers hiked the selling price by 10,000 yen for September shipment. The market price could keep firm under tight supply and pressure by supply side. The dealers’ sales volume decreased by 9.9% to 34,794 tonnes in August from a year earlier, according to survey for 11 members of Tokyo Steel Product Dealers Association. The dealers experience slower order for building, especially for mid- and low-rise structure while cut plate order for construction machinery seemed to be firm. Some minor shearing dealers operate at much less than the capacity due to slower demand. They cannot increase the reselling price when the buyers of steel structure fabricators are suffered from very slow building market. The makers reduce the supply for the dealers when the domestic supply is very tight due to strong demand from contract users. The lower supply reduces the dealers’ inventory, especially for thicker products. The processors increase the offer price to secure profitability under the slow demand and tight supply condition.