Steel Plate Market Price Continues Declining, Tokyo

Steel plate market price is gradually decreasing around Tokyo. The current price is 120,000 yen per tonne for standard size with 19 millimeters thickness, 5 feet width and 10 feet length while 140,000 yen per tonne for cut processed materials. The demand continues declining in February. Distributors show weak selling stances. The market is in downtrend.

Plate demand is decreasing from constructions. Mid- and small-size constructions maintain slow while many of large-size projects are postponed or reviewed. The demand from construction and industrial machines keeps 50% level compared with the recent peak before the drastic market change in November 2008.

Supply and demand balance of steel plate is totally loosing. Makers’ delivery delays for distributors have been solved. As a result, distributors’ inventories are increasing. Some of distributors seem to be lowering the reselling price for inventory adjustment.

A shearing processor source said order receipt volume for cut processed plates is worsening month by month. It is unclear when the market could recover. Distributors are concerned about demand shrinkage. The market price is likely to continue decreasing.