Mid-Thick Steel Sheet Market Price May Bottom Out, Tokyo

Middle thick steel sheet market price is likely to hit the bottom soon around Tokyo. Dealers and coil centers are in severe price competition with slow demand. But major players currently show stances to improve reselling price when they turned into monthly losses with too low market price since last autumn.

Dealers and coil centers have aggressively lowered their reselling price to reduce surplus inventories with demand shrinkage since last autumn. Some coil centers offered below 50,000 yen per tonne for cut products.

Some dealers and coil centers are now braking profit-less competition when their inventory adjustment progressed and they concluded a fiscal year at the end of March. Mid-thick sheet inventory is still an excess in the market but some size products become short due to output reduction by integrated steel makers.

Some makers decreased sheet price by 10,000 yen per tonne in April. Meanwhile, steel makers and offshore iron ore suppliers are in severe price negotiation. Market dealers consider steel makers cannot decrease sheet price easily under the condition.

On the other hand, the market price of cold rolled and surface treatment sheet is expected to decline soon. South Korean sheet makers are increasing the export to Japan thanks to cheap won rate and Chinese government are encouraging the export by raising tax rebate rate from 5% to 13% from 5%.