Japan Electric Furnace Steels to Follow Tokyo Steel’s Price Cut

Japanese electric furnace steel makers are forced to follow price reduction by Tokyo Steel Manufacturing, though they still study how much to reduce the price. The makers announce new pricing in this and next week.

Japanese largest rebar maker Kyoei Steel will announce the new pricing of reinforcing steel bar on Wednesday or Thursday. The firm would reduce the price but it is uncertain if the firm reduced to 57,000 yen per tonne as Tokyo Steel. The market interests expect the price would decrease to less than 100,000 yen per tonne.

The industry expects Yamato Steel would follow the H-beam price cut by Tokyo Steel in this week. Other electric furnace beam makers would announce the pricing in this month. They would decrease the beam price gradually to Tokyo Steel’s 83,000 yen per tonne. Nippon Steel and JFE Steel will maintain the current price.

Osaka Steel would decide the new price of angle and channel steel and Shinkansai Steel and Oji Steel announce the pricing of flat steel by next week. Pricing of these makers is indication for other makers. Major flat steel source expects the makers would reduce the price gradually taking care of stock of the dealers.

Price cut doesn’t mean the demand increase. A purchase person of major general contractor said the firm considers resuming the purchase when steel price started to drop significantly but the firm couldn’t fix steel purchase price for all building constructions under uncertainty.