Steel Sheet Market Price Maintains Flat around Tokyo

Steel sheet market price maintains flat around Tokyo. The market price was relieved of downtrend when ferrous scrap market price is surging. Japan’s largest electric furnace steel maker, Tokyo Steel Manufacturing, raised its ferrous scrap purchasing price several times in September. Then steel sheet dealers forecast Tokyo Steel would raise its steel sheet selling price for October contracts.

The present market price is 64,000-66,000 yen per tonne for hot rolled steel sheet of base size, 69,000-72,000 yen for pickeled steel sheet, 79,000-81,000 yen for cold rolled steel sheet. Electrogalvanized steel sheet market price is 89,000-91,000 yen per for hot coil based products and 99,000-101,000 yen for cold rolled coil based products. Hot-dip galvanized steel sheet is 89,000-91,000 yen.

Steel sheet shipment is increasing along car production recovery. Japanese domestic car production volume in July was 91.1% compared with a year earlier, which exceeded year-on-year 90% for the first time since the Japan Earthquake. Thus Japanese coil centers’ operating rate recovered to average 72.4% in July.

The demand also seems to have hit bottom from construction and civil engineering fields. These markets usually enter the demand season for October-December. One steel sheet dealer showed an expectation that their shipment must increase for October-March from the previous six months.

However, steel sheet dealers are concerned on low profitability despite of shipment recovery. A sales officer of Japanese integrated steel maker analyzed the market price cannot upturn due to loose supply and demand balance. He said domestic steel sheet inventory is increasing when steel export is slowed down by strong yen trend. It seems to take a time that domestic supply and demand become balanced.