Weak Market Price of Cold Rolled Steel Sheet in Tokyo

The market price of cold rolled steel sheet is weak at 81,000-82,000 yen per tonne in Tokyo for products with 1.2 millimeters of thickness, 3 feet of width and 6 feet of length. Inventories are surplus and it would take time to reduce them in the market. Some dealers are driven to sell the products at the cheaper price, though most dealers are unwilling to lower the price with little necessity.Trading maintains inactive after New Year holidays, when stagnancy continues in the market since the end of last year. Full trading seems to start in late January. Surplus inventory weakens the market mood and users are likely to continue the purchase only for the immediate needs.Imports of cold rolled coil could not decrease for a while. The import volume increased by around 40% in January-November 2005 from the same period of 2004, though it was not high at less than 70,000 tonnes in November only.Some dealers are reducing their selling prices to adjust their inventories or to secure the sales. The price reduction impacts the total market trend. Dealers are unwilling to lower the price easily those who sell the products on spot or small lots. However, the price is still decreasing in some sizes and large lot orders.