Still Weak Flat Steel Sheet Price in Tokyo

Sheet steel market price is flat around Tokyo when most of the dealers try to avoid low price transaction when many of them already liquidated the inventory. However, the market price could decline under the demand stagnancy.

The price is 60,000-62,000 yen per tonne for hot rolled flat steel around Tokyo. The price is 60,000-63,000 yen for pickling steel and 73,000-77,000 yen for cold rolled flat steel. The price of coated sheet is 85,000-88,000 yen for hot rolled based and 95,000-98,000 yen for cold rolled based products. But some coil center’s shipping price is as low as 50,000-59,000 for hot rolled flat and pickling steel while the price for cold rolled steel is 60,000-69,000 yen.

The coil centers get the fewer order receipt while the inventory adjustment is progressing due to the demand recovery of electronics and automotive. Many of the coil centers expect the operation in May is lower than that in April due to Japanese major holiday week in early May. The market price is unlikely to rebound under the price competition among coil centers and dealers.

The advancement of inventory adjustment is the only positive factor for the market. Japanese sheet inventory held by makers, dealers and members of Japan Coil Center Industry Association decreased to 4.25 million tonnes at end of March, which showed over 200,000 tonnes month-to-month drop for the 2 months in a row. The inventory at end of March is still too much compared with normal 4 million tonnes level. However, some coil centers and dealers plan to increase the purchase to replenish some stock out sizes.