Tokyo Steel to Raise Hot Coil Price by 3,000 yen/t

Tokyo Steel Manufacturing announced on Monday the firm increases the selling price by 1,000-3,000 yen per tonne for steel products other than concrete reinforcing steel bar and wire rod for June order, which the firm accepts until May 24. The firm increases the price by 3,000 yen to 65,000 yen per tonne for hot rolled coil, representing increases for 2 month in a row, and by 2,000 yen to 70,000 yen for H-beam, which reached 70,000 yen for the first time in 8 months. The firm said it decided the hike when the production cost will increase during July-September due to seasonal output reduction along with higher offshore market price. The firm tries to increase the hot coil export price to FOB US$ 570-580 per tonne for June-July shipment. The firm increases the price by 1,000 yen per tonne for pickling coil and sheet, by 2,000 yen for hot-dip galvanizing coil, checkered coil and plate, hot rolled plate and universal plate and by 3,000 yen for hot coil for June order. The firm said offshore steel makers announced price hike one after another to secure profitability in own currency under rapid depreciation of US dollar. Chinese steel makers try to pass higher cost from the lower tax rebate, which Chinese government is said to reduce from current 11% to 5% in June, on the steel selling price. Tokyo Steel said under the condition Japanese steel export price is lower than other countries’ makers. Tokyo Steel increased the price by 2,000 yen per tonne for U-shaped sheet pile, H-beam, checkered H-beam, I-beam and channel for June order. The firm left the price of rebar and wire rod unchanged. The firm said the firm couldn’t hike the prices under the unfavorable domestic rebar market and impact by wire rod import. The domestic steel market is expected to keep firm when the economy recorded higher growth rate in January-March. Tokyo Steel said the firm expects private capital expenditure keeps the strong steel demand. The firm said the hot coil output will increase to more than 100,000 tonnes in May thanks to higher export from less than 80,000 tonnes in April and less than 60,000 tonnes in March. The firm expects the H-beam output will be flat in May as 130,000 tonnes in April, which decreased from 160,000 tonnes in March.