Tokyo Steel to Hike Long, Flat Steels by 2,000 yen/t

Tokyo Steel Manufacturing announced on Monday the firm increases the selling price by 2,000 yen per tonne for long products and flat rolled products except for plate for the distributors for April order. The price hike is the first attempt for long products in 3 months and for flat products after October 2011 order.

The firm sees Japanese steel makers and other manufacturers increase the export when yen exchange rate decreases against other currencies. The firm expects domestic manufacturers’ operation rate should improve in and after April to use more steel products. The firm also sees improving international steel market price encourages Japanese steel makers’ export.

The firm decided 2,000 yen per tonne of price hike to fill the price gap between domestic market and export price while domestic market is still oversupply. The firm left plate price unchanged when the plate mill operation kept slow for recent months. The firm eyes additional price hike for May order depending on domestic market move.

The firm gets higher export order for hot rolled coil and H-beam especially from Asia and Middle and Near East. The export order receipt exceeded 100,000 tonnes through May shipment since the restart of export in February. The firm plans 30,000 tonnes of hot coil export in March.

The firm sees Asian market price improves due to the makers’ price hike efforts in China, South Korea and Japan. The firm gets export order at FOB US$ 670-680 per tonne for hot coil and US$ 780-790 for H-beam for May and June shipment. The firm tries to realize higher price for better profitability.

The firm also increased the selling price for domestic projects on Monday. The price increased by 2,000 yen to 76,000 yen per tonne for H-beam and 59,000 yen for concrete reinforcing steel bar while the firm left the plate price unchanged at 66,000 yen.

The firm is still negotiating with Tokyo Electric Power (TEPCO) for proposed electricity price hike effective in April. The firm will decide the steel price only depending on steel market, not on electricity cost.