Weak Plate Steel Price in Tokyo

Plate steel market price is decreasing at 105,000 yen per tonne for standard sized product with 19 millimeters thick, 5 feet width and 10 feet length and 110,000 yen for cut processed materials around Tokyo. The price is likely to decrease more due to slower demand and the dealers might be forced to sell under the cost price.

The dealers’ shipment is more than half of a year earlier level. The shearing processors’ activity is around 20-30% for construction and industrial machinery industry. The processing activity is also low at 50-60% level for construction.

The processing activity is very slow for mid- and small-sized building after the processors completed the work for order backlog got through earlier the year. The building demand shows no sign to recover when the users hold the activity under uncertainty for Japanese economy and steel market price.

The shearing processors’ plate steel inventory increased to 3 months of the shipment under slow demand. They try to reduce the inventory but the inventory adjustment to normal level of 1.5 months could take more months.