Tokyo Steel Cuts All Steel Items by 23,000-35,000 yen/t

Tokyo Steel Manufacturing announced on Monday the firm reduces the selling price by 23,000-35,000 yen per tonne for all items for distributors for November order. The price cut is the widest ever and the cut is 25,000 yen for hot rolled coil and 35,000 yen for H-beam, both of which decreases by total 45,000 yen from the peak in August order. The firm expects the lower price could encourage domestic market to find the bottom while the lower price could prevent import from increasing.

The new price is 57,000 yen for concrete reinforcing steel bar, 83,000 yen for H-beam, 72,000 yen for hot coil and 91,000 yen for plate. The new price is 28,000 yen lower for hot coil and 32,000-37,000 yen lower for H-beam compared with domestic competitors including Nippon Steel.

The firm expects the lower price would also attract offshore buyers when the firm offers FOB US$ 750-800 per tonne for hot coil and US$ 850-900 for H-beam for November shipment.

The firm plans 250,000 tonnes of output in October including around 120,000 tonnes of H-beam, 50,000-60,000 tonnes of hot coil and 20,000-30,000 tonnes of plate. The firm expects the output would increase to 270,000 tonnes in November with higher order receipt.