Rising Sheet Steel Price in Tokyo

Sheet steel market price is accelerated to increase around Tokyo. The dealers and processors increased the offer by 3,000 yen per tonne when Tokyo Steel Manufacturing increased the selling price for 3 months in a row and the import price increases. The dealers try to pass the higher cost price on the reselling price to secure the profitability while the buyers are resisting the higher price under slow demand for building.

The tighter supply also supports the price improvement. Domestic integrated steel makers are increasing the production but the additional supply is for export and automobile industry while the supply is limited for distributors’ market. The domestic makers apparently sold out for distributors for October shipment. Offshore makers also increase the offer for Japanese buyers. Japanese industry source said the buyers cannot secure the low priced sheet steel recently.

The demand is still slow for building industry while the demand improves for automobile and appliances. The demand for shutter and duct is also slow due to low level capital expenditure by private sector.

The dealers’ selling price, however, increases when the dealers have some stock out sizes for pickling steel, cold rolled flat steel and electro-galvanizing steel at the inventory. The price of cut sheet products is slow to increase due to strong resistance by the buyers.

The market price is 62,000-64,000 yen per tonne for hot rolled flat steel around Tokyo. The price is 64,000-66,000 yen for pickling steel, 75,000-78,000 yen for cold rolled flat steel, 86,000-88,000 yen for hot rolled based electro-galvanizing steel and 95,000-98,000 yen for cold rolled based electro-galvanizing steel.