Weak Plate Price in Tokyo

Plate steel market price is decreasing at around 105,000 yen per tonne for standard sized products with 19 millimeters thick, 5 feet width and 10 feet length and at around 110,000-120,000 yen for cut processed materials around Tokyo.

Demand maintains stagnant mainly for building materials. The demand for construction machines and industrial machines is also decreasing by 30-40% from a year earlier. Furthermore, the demand from dealers is almost halving compared with a year earlier.

The operation rate of small-middle size shearing processors is lowering by 20-30% from a year earlier for construction machines and industrial machines. The processors are advancing inventory adjustment by order reduction but their inventory increased by 50% in late 6 months.

Cut processed material price is reaching the bottom for shearing processors to gain margin. The market price keeps flat from last month. Market players consider the market price hasn’t hit the bottom yet. Plate makers are expected to decrease the selling price for dealers.