Tokyo Steel Cuts All Steel Items by 2,000-7,000 yen/t

Tokyo Steel Manufacturing announced on Monday the firm reduces the selling price for all steel items for distributors for November order, which is the first across the board price down since April order. The firm decided the price down to adjust to weak market price through the price cut by 2,000 yen per tonne for wire rod, by 5,000 yen for H-beam, hot rolled coil and plate and by 7,000 yen for concrete reinforcing steel bar.

Japanese steel market price keeps weak recently due to uncertain demand recovery. Tokyo Steel sees the weak price is partly due to overproduction by domestic integrated and electric furnace steel makers.

Tokyo Steel sees offshore steel market decreases due to higher distributors’ stock even after Chinese National Day holiday. The firm tries to compete with cheaper imports when the offshore market is as low as C&F US$ 500 per tonne for H-beam, hot coil and plate.

The firm reduces the selling price from the inventory as well to 52,000 yen per tonne for rebar and to 67,000 yen for H-beam and plate.

The firm newly starts inventory sales of rebar, plate, hot rolled flat steel and checkered plate on November 2 at Tahara plant, in Aichi, which is under construction. The firm prepares the commissioning by establishing sales force. The firm expands the sales staff from current 3 to 4 in November covering Shizuoka, Gifu, Aichi, Mie and part of Nagano. The firm also divides the sales division into long products and flat products teams at headquarters, Tahara and Osaka.

The firm also adjusts the extra charge for distributors. The firm removes 2,000 yen per tonne of extra for channel with 250 by 90 millimeters size while the firm reduces the extra from 4,000 yen to 2,000 yen for channel with 300 by 90 mm size.