Weak Plate Steel Price in Tokyo

Plate steel market price is weak tone at around 105,000-110,000 yen per tonne for standard sized product with 19 millimeters thick, 5 feet width and 10 feet length and around 110,000-120,000 yen for cut processed materials around Tokyo. Dealers7 shipping is very low when the demand keeps low for building material, construction machine and industrial machine. Dealers’ order receipts tend to be postponed due to anticipation steel market price lowers. Construction and industrial machine makers haven’t recovered the production yet. Consequently, plate demand isn’t expected to recover in a short term.

Dealers’ plate inventory increased by 1.5 times until March compared with usual months due to sluggish sales since last autumn. Dealers adjusted purchase volume to reduce the inventory. However, a shearing processor source said the inventory level becomes decent after the last half of fiscal 2009 ending in March 2010.

Dealers offer lower reselling price due to excess inventory. Plate makers are expected to decrease the selling price for dealers. The market price is likely to decrease more.