Slow Plate Market in Tokyo

Plate steel market price is flat at around 88,000 yen per tonne for standard size with 19 millimeters thick, 5 feet width and 10 feet length and at 98,000-100,000 yen for cut processed material at the dealers’ selling price around Tokyo. The demand slows mainly for construction while some dealers try to increase the selling price.

Private sector’s construction slows after the major earthquake. Public seismic strengthening work would increase in summer. However, a dealer source sees only limited numbers of fabricators and shearing processors can keep the order receipt and operation rate under severe competition in the industry.

The plate inventory held by plate processors was 100,000-110,000 tonnes or more than 200% of the shipment around Tokyo from March through the end of May, according to the processors’ group. The inventory is slightly larger than the benchmark of 2 months. However, the dealers keep the selling price. A dealer source sees the order would not increase even if they would reduce the offer price.

While higher shipment for construction machinery, the source sees the demand would not increase during summer while the demand could increase for rebuilding activity of the quake damaged area.