Steel Sheet Market Price in Weak Tone around Tokyo

Steel sheet market price is in weak tone around Tokyo. The demand still maintains low level. Meanwhile, dealers’ trading might be stimulated by automakers’ output recovery. Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, kept the selling price for July contracts unchanged. Market price downtrend is gradually backing away.

The market price is 65,000-68,000 yen for hot rolled steel sheet, 73,000-76,000 yen for pickled steel sheet, 80,000-82,000 yen for cold rolled steel sheet, 90,000-92,000 yen for electrogalvanized steel sheet based on hot rolled sheet, 100,000-102,000 yen for electrogalvanized sheet based on cold rolled sheet and 90,000-92,000 yen for hot dipped zinc coated steel sheet.

Toyota Motor’s output per day in September is expected to represent higher than the pre-earthquake plan. Other automakers are also increasing productions. Steel makers’ sheet supply would tighten if domestic automobile output recovered rapidly. Dealers expect the product overstock in the market could be resolved.

The market price has been edging downward since long holidays in early May. Steel sheet demand was slow and Tokyo Steel lowered the selling price for June contracts. One dealer source said the current price level is nearly unprofitable. Some dealers are negative to conclude new contracts at the low price.

Another negative factor is that Anshan Steel, Chinese major steel maker, decreased its hot and cold coil export prices to Japan for August shipment. Cold rolled coil price is set at C&F US$ 850 per tonne, lower than Japanese products. A large dealer source said some users seem to have made orders to Anshan Steel.