Tokyo Steel to Hike All Steel Items by 3,000 yen/t

Tokyo Steel Manufacturing announced on Monday the firm increases the selling price of all steel items by 3,000 yen per tonne for distributors for March order. The full scale price hike is third consecutive month while the price hike is for 4 months in a row for concrete reinforcing steel bar and wire rod. The firm tries to cover higher cost when ferrous scarp cost increases by 2,000-2,500 yen from previous month. The firm eyes additional price hike in and after April when scrap price would increase more under strong resource market.

The firm sees the cost should increase more when steel making raw materials cost keeps high. The firm recognizes positive demand condition when construction activity increases mainly around Tokyo and steel order increases even in other part of Japan. However, the firm is still cautious for supply balance when the demand wouldn’t increase widely.

The firm restarted steel export when offshore market increases while the firm was reluctant to get unprofitable export order. The firm got several thousands tonnes of hot rolled coil order at FOB US$ 800 per tonne for March and April shipment from Southeast Asian buyers. The firm tries to increase the export price to US$ 830 level for hot coil and US$ 920 for H-beam.

The firm also increases the selling price for each building project to 83,000 yen per tonne for H-beam, 68,000 yen for rebar and 80,000 yen for plate steel. The firm tries to get the higher offer when the order is increasing recently.

The firm plans total 140,000 tonnes of production in February including 10,000-20,000 tonnes at Tahara plant and near 50,000 tonnes for H-beam. The firm expects the total production increases to 180,000 tonnes level in March and April due to export shipment while the firm increases H-beam production to around 60,000 tonnes.

The firm prepares for application to get certification of large diameter square pipe products from Ministry of Land, Infrastructure, Transport and Tourism to start commercial production at Tahara plant. The firm expects the certification is approved in fiscal 2011 starting April.