Steel Sheet Price Keeps Downward in Japan and Offshore Markets

Steel sheet price continues decreasing in both domestic and offshore markets. Levelers’ shipment price is less than 60,000 yen per tonne for hot-rolled and pickled steel sheet while the price is less than 70,000 yen for cold-rolled steel sheet around Tokyo. As to overseas market, Japanese integrated steel makers and South Korean re-rollers are in severe price negotiation for April shipment at around FOB$ 450 per tonne. It is unclear when the market price hits the bottom.

Steel sheet demand is globally weak. In Japan, the demand maintains stagnant though some automakers narrowed output reduction range in March and, a coil center source said, dealers’ order receipt slightly increased compared with February. The dealers’ steel sheet sales volume keeps 40-50% lower than a year earlier since January 2009.

Coil centers and distributors are hurrying to reduce their inventories before the financial year conclusion at the end of March. The steel sheet market price is depressed by inventory adjustment even though some of shearing processors are trying to sustain the price level.

At overseas, sales competition becomes much severer. For example, Russian products are inflowing more into Chinese market. A re-roller source said some producers are offering below $300 per tonne for hot coil in South Korea, the largest market of hot coil. Some of Japanese makers offered around FOB$ 500 at the end of February. However, the market price is declining week by week and South Korean re-rollers now offer even lower price.