Weak Colored Galvanizing Flat Steel Price in Tokyo

Colored galvanizing flat steel market price is weak at around 260,000 yen per tonne for small coil with 0.35 millimeters thick and 914 mm width and at around 234,000 yen for large coil around Tokyo. The market price is likely to keep decreasing when the buyers increase the pressure for lower price under overstock for the very slow demand.

The flat steel rerollers’ profitability get worse when they reduce the production by more than 50% from a year earlier level and integrated steel makers keep hot rolled coil price. The dealers’ inventory adjustment apparently takes more time under low level shipment.

The buyers minimize the purchase volume when building demand is very slow and especially in season off for working of roof and outside wall in January-March period. The demand is expected to keep slow for a while.

The industry interests expect they cannot reduce the selling price in each level until iron ore and coking coal price would decrease. However, some dealers try to liquidate the inventory at lower price impacting on the market.