Tokyo Steel Hikes Sheet Steel by 2,000 yen/t

Tokyo Steel Manufacturing announced on Tuesday the firm increases the selling price of sheet steel products by 2,000 yen per tonne for distributors for July order. The sheet steel hike represents increases for 7 months in a row while the firm keeps the long products price for the first time in 6 months. The firm reduces the order acceptance of plate mill products in and after July through the year to secure materials for construction of new plant in Aichi. The price increases to 117,000 yen per tonne for hot rolled coil, to 122,000 yen for pickling steel and to 135,000 yen for hot dip galvanizing steel while the firm keeps the price at 112,000 yen for concrete reinforcing steel bar and at 128,000 yen for H-beam. The firm expects the domestic steel demand will recover after summer while the offshore steel market keeps strong due to high growth rate in developing countries. The firm already got export order for H-beam at FOB US$ 1,330 per tonne and for hot coil at US$ 1,160 for September shipment while the firm offers US$ 1,350 for H-beam and US$ 1,180 for hot coil for October shipment. The firm plans to produce 70,000 tonnes of hot coil, 140,000 tonnes of H-beam and 30,000 tonnes of plate in June. The output volume will decrease in July and August due to regular maintenance in summer period. The firm consumes around 100,000 tonnes of steel including around 50,000 tonnes of plate, around 30,000 tonnes of H-beam and around 20,000 tonnes of rebar for the new plant in Aichi.