Sheet Steel Price Rises in Tokyo

Sheet steel market price accelerated to increase around Tokyo. The price increased by around 2,000 yen per tonne in February and the price is expected to increase more. The distributors try to seek higher price when domestic integrated steel makers should increase the selling price widely. Some dealers try to reject the order to secure materials with expectation for higher price.

The dealers’ market price is 75,000 yen per tonne for hot rolled flat steel, 78,000 yen for pickling steel and 84,000 yen for cold rolled flat steel around Tokyo, which is around 4,000 yen higher than the beginning of the year.

A trading firm source said the integrated steels should increase the selling price widely for April and after to cover higher cost for raw materials and energy. The market expects the hike could be around 20,000 yen per tonne.

The buyers try to build inventory since mid-January before the price increase more. However, the availability is limited when domestic makers reduce the supply for distributors’ market and offshore makers hiked the price widely. The supply for dealers’ market is expected to get tighter after April when the makers try to ship more for automobile and other contract users. The sheet dealers and coil processors try to secure the materials preparing for supply shortage and higher price condition.