Tokyo Steel Sets All Steel Prices Unchanged in May

Tokyo Steel Manufacturing announced on Monday the firm sets selling price of all steel products unchanged for May orders. The firm leaves the selling price of all items unchanged for 2 consecutive months. Productive cost is increasing mainly for ferrous scrap but the firm is apprehending the increase of steel import, mainly steel sheet. Mr. Naoto Ohori, Tokyo Steel’s executive director, explained the firm also considered the supply and price stability for reconstruction in North Japan after Japan Earthquake.

Mr. Ohori said restoration related orders are currently increasing for hot rolled coil and H-beam but domestic business condition is unclear when manufacturing industries’ production activity is low after the disaster. Mr. Ohori said new projects of building construction is decreasing when private companies readjust business investment while civil engineering services are put off or called off.

Tokyo Steel’s export offer price of hot coil is around FOB US$ 830 per tonne. The firm seems not to have succeeded in export contract conclusion recently since overseas market price is declining.

The firm’s all plant output is estimated to total approximately 200,000 tonnes in April. Production at Utsunomiya works would recover to 20,000 tonnes, the same level as pre-disaster though the works was damaged by the earthquake.

The firm’s H-beam production is estimated to total 60,000 tonnes in April. Plate production would total 30,000 tonnes. Hot coil production would exceed 100,000 tonnes including 25,000 tonnes of Tahara works. Tahara works’ production is scheduled to reach 30,000 tonnes in May.