Steel Sheet Market Rebounds after 8 Months in Tokyo

Steel sheet market price increased by 2,000-3,000 yen per tonne for hot rolled sheet and pickled sheet around Tokyo this week. The market price rebounded for the first time in 8 months. Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, announced price hike of steel sheet by 8,000 yen in December. Last week Nippon Steel decided the price hike plan by 5,000 yen for hot, cold rolled sheet and surface treated sheet for January contracts. Major steel sheet dealers and coil centers launched announcement of reselling price hike. Dealers’ hike was almost approved mainly for hot rolled sheet thanks to the supply tightness.

The market price is 62,000-65,000 yen per tonne for hot rolled sheet and 72,000-74,000 yen for pickled sheet. Japanese steel sheet inventory decreased to 3,744 million tonnes for hot, cold rolled and surface treated sheet at the end of November. The supply and demand balance has improved. Dealers’ inventories are short for some size products. Steel sheet users are increasing speculative orders.

Steel sheet demand is expected to keep flat or turn up for January-March compared with October-December. The demand temporarily dropped for October-December when the incentive program for eco-car ended. New housing starts are gradually increasing over the previous year. Some major dealers show intention to raise the reselling price step by step. Dealers seem to accelerate price hike to reflect tight supply and rising raw material price.