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 at around 135,000 yen for cut processed materials around Tokyo. The price is expected to decrease more due to slowing demand for building and construction and industrial machinery.

The dealers’ plate shipment halves from a year earlier level mainly due to very slow demand for building. Domestic manufacturers and private sector reduce the capital expenditure for plant and other facilities while small- and mid-sized building activity keeps slow.

The demand keeps decreasing for construction and industrial machinery. Machinery parts providing plate shearing processors’ operating rate is 60-80% lower than peak in 2008 due to lower machinery demand.

The dealers’ plate inventory keeps increasing due to slow demand. The dealers try to reduce the inventory even at lower price when the demand recovery is uncertain and domestic integrated steel makers keep the selling price at around 115,000 yen per tonne.