Steel Sheet Market Price Maintains Low around Tokyo

Steel sheet market price maintains low around Tokyo. The demand keeps weak for building construction and civil engineering after the mega earthquake while steel sheet inventory is excess against the actual demand. Steel makers’ price hike has not penetrated in the market. The market is likely to be in wait-and-see mood for a while mainly due to uncertainty on global economy slowdown. Many dealers are cautious that the market price might fall more.

The current market price is 65,000-68,000 yen per tonne for hot rolled steel sheet, 73,000-76,000 yen for pickling sheet, 80,000-82,000 yen for cold rolled sheet, 90,000-92,000 yen for electrogalvanizing hot rolled sheet, 100,000-102,000 yen for electrogalvanyzing cold rolled sheet, and 91,000-92,000 yen for hot-dip galvanizing sheet.

Some coil centers increased shipping volume in July from a year earlier for automobiles. However, another coil center source said the shipment volume maintains low level yet.

The demand remains stagnant except for car industry. Some coil centers are offering cheap reselling prices at below 65,000 yen per tonne for hot rolled sheet with non-standard size under severe price competition. Dealers are trying to reduce long-term contracts and adjust inventory. But market inventory has not decreased due to low demand and back action of speculative demand after the earthquake.