Weak Plate Price in Tokyo despite Demand Recovery

Steel plate trading is slow around Tokyo in the beginning of the year. The market price is weak at around 85,000 yen per tonne for standard size with 19 millimeters thick, 5 feet width and 10 feet length and 96,000-97,000 yen for cut processed material at the dealers’ selling price. The price is weak while the demand increases for building and bridge construction. The price could decrease when the makers reduced the selling price in late 2011.

The market price is weak as the end of last year. The demand is slow at the dealers’ shipment while the demand increases for large scale building projects mainly around Tokyo and for bridge. The dealers’ transaction volume is increasing but the demand is not enough strong to support the price rebound.

Some dealers see the price would not decrease more. The market situation could improve when some dealers slightly increase the purchase volume from the makers. The inventory held by the dealers around Tokyo is normal level at 1.5-2 months of the shipment. The supply balance would improve.