Mid-sized Plate Price Keeps Weak in Tokyo

Hot rolled steel market is continuing to weak tone in Tokyo. Mid-sized plate price show inclination to hit the bottom at 67,000-68,000 yen per tonne for cut sheet, but the price doesn’t have the power to bound back. Pickled steel sheet price decreased by about 1000 yen per tonne to 69000-71000 yen per tonne. Coil centers and dealers’ selling stance is unequal with slower shipment. Some dealers expect to recover the demand for building construction from autumn. However, it is uncertainly in the future. Coil centers and dealers’ situation is expected to keep hostile environment. Mid-size plate dealer source said the shipment in July recovered due to the restocking by local dealers considering to tighter supply of steel plate, but the shipment decreased after the restocking from the middle of August. Pickled steel sheet shipment was low due to the sluggish sales of Nissan Motor. Meanwhile, mid-size plate market price came to a stop to decrease by dealers’ resistance when dealers and coil centers’ profits are reducing due to increased import products price. However, the competition by each dealer doesn’t stop when some dealers or coil centers want to increase selling volume. Japanese integrated steel makers are advancing the adjustment of the supply and demand for decreased inventory by the reduction of order acceptance for steel sheet for building. However, the moderation of the inventory make a long time.