Tokyo Steel Cuts All Steel Items by 5,000 yen/t

Tokyo Steel Manufacturing announced on Monday the firm reduces steel selling price by 5,000 yen per tonne for all items for distributors for December order. The firm decreased the all item price for November order. The firm decided the price cut to adjust to the market situation at home and abroad. The firm expects the price cut indicates bottom price for the distributors’ market when ferrous scrap market price shows sign to rebound.

Chinese steel makers reduce the selling price when Chinese steel market price is weak under oversupply partly due to Chinese inflation fighting effort. European financial crisis impacts on Emerging countries’ economy growth. Tokyo Steel reduces the steel price to adjust the price gap with Japanese steel price and offshore steel price when import steel supply pressure increases under high yen rate. Tokyo Steel also sees domestic steel demand recovers mainly in eastern Japan.

Tokyo Steel produced 220,000 tonnes of steel products in October including 40,000 tonnes of products from Tahara plant. The firm produced 70,000 tonnes of H-beam, 90,000 tonnes of hot rolled coil and 35,000-40,000 tonnes of plate in October. The firm plans to make same level of volume in November.

The firm reduced selling price for building project by 5,000 yen per tonne on Monday. The new price is 71,000 yen for H-beam, 53,000 yen for concrete reinforcing steel bar and 66,000 yen for plate.