Weak Plate Steel Price in Tokyo

Plate steel market price is decreasing at around 115,000 yen per tonne for standard sized product with 19 millimeters thick, 5 feet width and 10 feet length and around 130,000-135,000 yen for cut processed materials around Tokyo. The price is likely to decrease more when the dealers try to liquidate the overstock under very slow demand condition.

The demand is still low level for building. The building activity slows for major building along with mid- and small-sized buildings when the developers postpone or cancel the plans under slow economy. The dealers get very low order in and after April.

The demand shows sign to recover slightly for construction and industrial machinery while the demand dropped sharply since late 2008. However, the plate demand recovery could take more time when the users are expected to continue inventory adjustment through September. The shearing processors’ operation rate is around 30-50% of the level in April-September 2008.

Tokyo Steel Manufacturing reduced the plate selling price by 5,000 yen to 65,000 yen per tonne for April order under the very slow demand. The price cut also impacts on the dealers’ market.