Japan Steel Sheet Makers Cuts Price by 10,000 y/t for Apr-Jun

A Japanese dealer source said some integrated steel makers announced to decrease the selling price of steel sheet for wholesalers by 10,000 yen per tonne for April-June shipment. Steel makers’ selling price is expected to be around 85,000 yen per tonne for black scale hot-rolled sheet. Makers are also likely to start the price negotiation to decrease by 10,000 yen per tonne with re-rollers.

Japanese integrated steel makers are expected to get into the red for January-March with higher productive cost caused by wide-range output reduction. Steel makers couldn’t reduce productive cost easily as long as they keep output cut and hold raw material purchased at high price for April-June. However, they seem unable to refrain from price cut for steel sheet when the market price is decreasing at home and overseas.

Japanese automakers are increasing output slightly after March. Coil centers and dealers are adjusting the inventory. Steel sheet market price is expected to hit the bottom when integrated steel makers offered the selling price for new fiscal year starting April.