Weak Plate Price around Tokyo

Steel plate price is flat with potential decrease around Tokyo. The market price is 95,000-100,000 per tonne for standard size and around 110,000 yen per tonne for processed material. Spot demand is flat at low level. Inventory adjustment by dealers is progressing. However, the dealers’ shipment would not increase and their competition to get order is severe.

The shipment for steel frame would remain low due to the decrease of private investment. One dealer source said the dealer has received fewer inquiries since August.

The domestic demand for construction machinery and industrial machine is low while the export to East Asia shows a sign of increase. Processed plate demand would not recover soon. The sales volume of plate decreased by 37.1% to 21,871 tonnes in August from a year earlier, according Tokyo Steel Product Dealers Association. The range of year-to-year decrease shrank in August and the shipment increased by 10.5% from July, which increased for 3 straight months. The inventory decreased by 18.6% to 52,505 tonnes in August from July. The inventory decreased for 7 months in a row month to month and showed the first year to year decrease since June 2008.

The price would not decrease widely. However, the price could decrease slightly. Tokyo Steel Manufacturing’s selling price is 70,000 yen per tonne while integrated steel makers’ price seems to be 85,000-90,000 yen. One dealer source said the price decreases when the dealers try to receive a large lot order.