Japanese Steel Dealers Show Weak Reactions against Tokyo Steel’s Price Annonucement

Japanese steel dealers are trying to improve reselling prices when Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, set its steel product selling prices unchanged for February contracts. Steel sheet dealers around Tokyo said market price of hot rolled steel sheet is totally weak for both imports and domestic integrated steels’ products. Another dealer suggested reselling volume is stable but price competition is very severe. Dealers are presently forced to reduce losses or offer low prices against second and third dealers.

Steel plate dealers showed weak reactions against Tokyo Steel’s latest price announcement. Market price of imported plate has already declined to the level as low as Tokyo Steel’s price at 65,000 yen per tonne. Price gap is only 10,000 yen between Tokyo Steel’s and domestic integrated steels’. Steel plate shipment seems slightly recovering for large building projects around Tokyo while maintains slow for small and middle class dealers. Plate dealers are minimizing orders to steel makers including Tokyo Steel.

H-beam dealer source said they aim to raise the market bottom price since dealers have failed to pass Tokyo Steel’s previous price hike on the reselling price fully. Order volumes for H-beam dealers maintain low. H-beam market price is 73,000-75,000 yen per tonne for base size around Tokyo. Dealers can’t gain profits enough when Tokyo Steel’ price announcement is 71,000 yen. H-beam users strongly require price cut against dealers. Meanwhile, demand upturn is expected for reconstructions in the disaster areas of the Grate East Japan Earthquake.

Rebar market price is 57,000-60,000 yen around Tokyo. One dealer source said the market price would not be affected so much by Tokyo Steel’s latest price announcement. Rebar makers are offering price hike though ferrous scrap cost is lowering. Rebar dealers aim to fix the market mid price level at 60,000 yen.