Peaking Plate Steel Price for Commodity Grade in Tokyo

Plate steel market price could split into higher grade and commodity grade around Tokyo. The demand for high grade plate keeps increasing while the commodity grade demand decreases. The selling price by the dealers, which deals mainly for commodity grade, shows sign for peaking.

The processors’ shipment decreased by 19.2% to 56,774 tonnes for commodity grade in August from a year earlier, while the high grade plate shipment increased by 0.1% to 202,288 tonnes, according to Japan Steel Plate Shearing Industrial Guild. The commodity grade shipment decreases under slump for building market.

The high grade plate supply is still tight. Domestic integrated steel makers increased the selling price by 10,000 yen per tonne for August order when the makers keep full capacity operations with strong demand for shipbuilding and other contract users. The processors try to find the timing to increase the selling price for cut processed high grade products to pass higher cost price.

However, the commodity grade market price is peaking at 128,000-129,000 yen per tonne for standard size with 19 millimeters thick, 5 feet width and 10 feet length and at 148,000-150,000 yen for cut processed products around Tokyo.