Weak Sheet Steel Price in Tokyo

Sheet steel market price is weak at around 90,000-91,000 yen per tonne for hot rolled flat steel around Tokyo. The dealers’ shipment decreases when buyers reduce the purchase volume under slower demand for automobile, appliances and construction materials. The price could decrease more when some of the dealers and processors liquidate the inventory at as low as less than 80,000 yen to secure working capital.

The market price is 93,000-94,000 yen per tonne for pickling steel, 106,000-108,000 yen for cold rolled flat steel, 111,000-112,000 yen for hot coil based coated steel and 121,000-122,000 yen for cold coil based coated steel around Tokyo.

A coil center source said the shipment decreases by more than 30% since October compared with a year earlier level. Slower demand impacts on the dealers’ transaction when the demand is very slow for automobile, appliances, machinery and construction. The dealers’ inventory increased to 4.473 million tonnes for hot, cold and coated steel at end of October, which was the highest level in 3 years. The oversupply condition pressures on the market price.

Offshore makers’ hot coil offer price decreases to Japanese buyers while Chinese market price is hitting bottom. Domestic integrated steel makers still keep the high level selling price. However, some dealers seek the integrated steels should reduce the selling price to meet the current market condition.