Tokyo Steel Leaves All Steel Prices Unchanged

Tokyo Steel Manufacturing announced on Monday the firm leaves the selling price unchanged for all steel items for distributors for June order, which was the first price freeze for all items in 8 months. The firm sees steel market players see the next move at home and abroad when ferrous scrap price decreases and Chinese steel market price entered into adjustment phase. The firm eyes additional price hike depending on raw materials cost for July-September.

The firm increased the steel selling price by 15,000-18,000 yen per tonne in the year to cover higher raw materials cost. However, scrap price decreases recently at home and abroad and the steel users reduce the order to find next price trend. The firm sees the domestic buyers try to find the timing to submit order for construction plans in and after autumn. The firm left the spot selling price unchanged at 80,000 yen per tonne for H-beam, 68,000 yen for concrete reinforcing steel bar and 77,000 yen for plate.

The firm increases the H-beam production to 50,000 tonnes in May and June compared with 41,000 tonnes in April. The production increases from 60,000-70,000 tonnes to 80,000 tonnes for hot rolled coil while the plate production will increase to 25,000-30,000 tonnes in May.

The firm, however, cannot get new export order for H-beam and hot coil when the buyers hold the order while the firm got just more than 10,000 tonnes of plate export order at FOB US$ 810 per tonne.

The firm starts steel making operation at Tahara plant in late May. The firm expects the plant can get certification of Japan Industrial Standards for sheet steel products as early as in June.