Weak Color Galvalume Demand in Tokyo

Color 55%-aluminium-zinc coated steel sheet market price is flat at around 230,000 yen per tonne for small coil with 0.35 millimeter thick and 914 millimeter width and 210,000 yen for large coil around Tokyo. The price could increase when Japanese major coated steel sheet makers of Nippon Steel & Sumikin Coated Sheet and JFE Galvanizing & Coating increase the price by 20,000 yen for the shipment in April. However, market sources see the makers and dealers would experience hard time to pass the higher cost on the selling price while the demand remains low.

The shipment stays at low level after the makers announced price increase, dealer sources said. The users accepted the price hike in 2008 when the short supply is concerned. However, the users would not increase the purchase volume before the price hike in 2010, according to one dealer source. Some dealers receive more inquiries for the construction project. However, the shipment does not increase. While the inventory held by makers and dealers stays at low level, the demand remains low. The price would not increase for a while.