Steel Sheet Market Price Shows Rebounding Sign, Tokyo

Steel sheet market price shows a sign to rebound around Tokyo. Steel makers’ sheet supply is tightening when the demand keeps steady from automobiles and electric appliances stimulated by governmental economic measures while Japanese integrated steel makers are increasing sheet export. The supply also decreased due to a fire accident at JFE Steel’s East Japan Iron Works at the end of December 2009. Additionally, raw material prices are expected to surge in fiscal 2010 starting in April. Local dealers are cautiously eyeing when to raise the reselling price.

Local dealers’ reselling price is 59,000-61,000 yen per tonne for hot rolled sheet, 61,000-63,000 yen for pickling steel and 74,000-76,000 yen for cold rolled sheet. Electrogalvanized sheet price is 86,000-88,000 yen for the product based on hot sheet and 96,000-98,000 yen for the product based on cold sheet. Hot dip sheet price is 87,000-89,000 yen.

Japanese domestic inventory of hot, cold and coated steel sheet totaled 3.396 million tonnes at the end of November 2009. The inventory became below 3.4 million tonnes after 4 months. The inventory to shipment rate was 1.95 months, approaching 1.89 months which is said the moderate level by makers.

Japanese coil centers’ inventory rate was 0.98 months of shipment at the end of November, the record low. Coil centers’ operation rate exceeded 70% for November and December thanks to the steady demand from automobiles. Another factor was that dealers had minimized sheet procurement from makers.

Japanese industrial machine makers’ order receipts in November represented the first year-to-year plus in 11 months. Demand for hot rolled steel sheet is expected to recover for the related applications. However, the demand remains low from building constructions. Japanese construction machine makers’ shipment value in November represented year-to-year minus for 14 straight months by November.