Processed Steel Plate Price Lowering in Tokyo

The market price of processed steel plate decreased by 5,000 yen to 145,000 yen per tonne for non-standard and base-sized products around Tokyo within December. Material plate price is also lowering by 2,000-3,000 yen to 125,000 yen per tonne from the end of November. Dealers’ order receipts are decreasing from machines as well as constructions after October, though machine related orders had kept relatively steady. The market price turned downward to reflect the weak demand.

Plate demand had maintained firm from construction and industrial machines. However, machine makers are recently reviewing their production plans. Especially for truck parts, some plate processors’ order receipts seem almost half compared with the level in a half year to September 2008.

Plate demand keeps slow from construction markets, especially for middle- and small-size buildings. Many construction projects are recently canceled or postponed when domestic economy is being more unforeseeable.

Japanese integrated steel makers are selling plate at around 115,000-120,000 yen per tonne to wholesalers. Some dealers are setting the reselling price unchanged for standard size products.

However, processed plate demand is unlikely to recover in a short term. Integrated steels’ selling price stays relatively high while Tokyo Steel Manufacturing set its selling price at 91,000 yen for November and 86,000 yen for December. The market price would continue to decline.