Sheet Dealers Increases Reselling Price by 5,000 y/t, Tokyo

Sheet dealers are raising the reselling price of coated steel sheet by around 5,000 yen per tonne from the beginning of July around Tokyo, when dealers’ inventory adjustment progressed along makers’ output reduction and trade among dealers are increasing. Moreover, imported steel sheet price is rising when South Korean re-rollers will raise the selling price to follow high market price in Asia.

The market price is 85,000-88,000 yen per tonne for electric galvanizing steel based on hot rolled flat steel and 95,000-98,000 yen on cold-rolled flat steel around Tokyo.

Dealers have reduced inventories intensively during January-March. Japanese hot, cold and coated sheet steel inventory totaled below 4 million tonnes held by makers, distributors and coil centers for domestic shipment at the end of April, which decreased more at the end of May. A dealer source said the inventory decreased for the size with 2.3 and 1.6 millimeters thick especially. There is a tight mood in dealers’ market when makers’ next sheet delivery us scheduled in and after September.

Sheet market price has dropped by over 40,000 yen per tonne since last autumn. Dealers have hurried to reduce their high-price inventories with an anticipation material price such as coal or iron ore drops. However, material price didn’t drop largely in fact. Consequently, dealers or coil centers will recover the reselling price.

Major dealer source said they would post loss in the case of failing in price hike by 10,000 yen per tonne. Major dealer such as Hanwa Corporation already launched out the price hike of hot rolled sheet by 5,000 yen per tonne in late May.