Plate Market Price Keeps Drop around Tokyo

Plate steel market price is expected to lower slightly around Tokyo. Dealers’ contract volume is halving year-on-year with the demand drop from construction machines, building materials or industrial machines. Some dealers are reducing the reselling price for inventory adjustment.

The market price decreased by 6,000 yen to 120,000 yen per tonne for the size with 19 millimeters thick, 5 feet width and 10 feet length compared with the end of January at dealers’ sites around Tokyo. The market price lowered by 5,000-10,000 yen to 135,000-140,000 yen per tonne for cut processed materials.

The demand still decreases from small-middle and large size building constructions. Manufacturing industry is reducing the investment, especially domestic machinery makers. Shearing processors are forced to decrease the operation by 70-80%.

Dealers’ sales volume decreased by 55.4% to 18,082 tonnes in January from a year earlier around Tokyo, according to dealers’ association. The sales volume is decreasing step by step after November 2008. Their inventory volume increased by 45% to 85,111 tonnes in January from a year earlier. The inventory continued to increase for 4 straight months though which had stayed at around 60,000 tonnes per month until September.

Electric furnace steel makers launched output reductions but the supply and demand balance is loosing. Plate makers keep the selling price at over 110,000 yen per tonne for dealers. A shearing processor source said some processors decreased the reselling price to receive orders. Tokyo Steel Manufacturing reduced the selling price by 10,000 yen to 70,000 yen for March contracts.