Plate Price Declines by 5,000 yen around Tokyo

Plate steel market price decreased by 5,000 yen to around 115,000 yen per tonne for standard size 19 millimeters thick, 5 feet width and 10 feet length compared with a week ago around Tokyo. The dealers’ plate shipment plunged down due to the slow demand for construction, construction machinery and industrial machinery. The dealers reduce the selling price to adjust the excess inventory.

The dealers’ order backlog for construction is mainly scheduled in fiscal 2008 ending March and new inquiry is very slow. Te processors’ cut processed material operation rate for machinery is only 20-30% against capacity. A dealer source said they have little order for processed material.

According to the survey by plate dealers group of Tokyo Steel Product Dealers Association, 11 firms’ plate shipment decreased by 55.4% to 18,082 tonnes in January from a year earlier while the inventory increased by 45.0% to 85,111 tonnes or about 5 times of the shipment.

The dealers’ shipment decreased by 10-30% every month compared with a previous month since November 2008. The dealers estimate the shipment in February has decreased from January and would slump for a while. The expectation for lower price accelerates when the supply gets easier.