Weak Sheet Steel Price in Tokyo

Sheet steel market price is weak at around 77,000-79,000 yen per tonne for hot rolled flat steel around Tokyo. The price is decreasing from current leve3l at 78,000-80,000 yen for pickling steel, 95,000-97,000 yen for cold rolled steel, 101,000-103,000 yen for hot based coated steel and 111,000-113,000 yen for cold based coated steel.

The dealers’ shipment is very slow when the manufacturers try to reduce the inventory. The coil centers are in major operation cut. The centers try to reduce the inventory but the pace is slow under low level shipment. Some dealers try to liquidate the inventory at less than 70,000 yen per tonne for hot rolled flat steel and less than 80,000 yen for cold rolled flat steel.

Domestic integrated steel makers try to keep the higher price. The makers, which are in major production cut, are likely not to reduce the selling price to the level the users want for fiscal 2009 starting April. Some sources expect the price cut could be only 15,000 yen per tonne.