Strong Sheet Steel Price in Tokyo

Steel sheet market price is strong in Tokyo. Coil centers and dealers are trying to raise the reselling price when supply and demand balance is improved and international market price is surging. The demand is recovering from automobile and electric appliance industries while keeps low from building materials. Coil centers and dealers are concerned about negative earnings due to low operation and sales volume.

Sheet steel market price is around 62,000-64,000 yen per tonne for hot rolled flat steel around Tokyo. The price is 63,000-65,000 yen per tonne for pickling steel, 74,000-78,000 yen for cold rolled flat steel, 85,000-89,000 yen for hot rolled based coated steel and 95,000-99,000 yen for cold rolled based coated steel.

Japanese steel sheet inventory for domestic shipment decreased to 3.54 million tonnes at the end of June at Japanese steel makers, distributors and coil centers belonging to Japan Coil Center Industry Association. Japanese integrated steel makers are starting to increase the output but their operation is already full for July-September thanks to healthy export. Coil centers’ operation rate is increasing to about 60% from below 50% along increasing automobile output.

Market inventory is decreasing. Many size products seem to be short. Especially, the supply and demand of pickling sheet is becoming tight when pickling sheet is used by mainly automobile industry.