Tokyo Steel Raises Sheet and Rebar by 2,000 Yen/t

Tokyo Steel Manufacturing, Japanese largest electric furnace steel maker, announced to raise the selling price of steel products by 2,000 yen per tonne for August contracts on Tuesday. Meanwhile, the firm didn’t change the price of shaped steel and U shaped sheet pile. The firm raised sheet price for 2 consecutive months seeing the progress of inventory adjustment in the market. As to concrete reinforcing steel bar, this is the first hike in late 3 months. Naoto Ohori, the firm’s general manager, said the firm set shape steel price unchanged to avoid confusion in the market.

The demand for sheet steel is increasing from automobiles or electric appliances by governmental stimulus measures at home and overseas. Inventory adjustment progressed. Japanese steel makers are relaxing the output reduction and raising the selling price of steel products. Ferrous scrap price increased by 5,000 yen per tonne for a month, while steel makers’ sheet selling price slightly increased by 2,000 yen. Mr. Ohori said the firm carefully judged the price announcement because the market price hit the bottom but domestic demand is stagnant yet.

As for shape steel, Japanese integrated steel makers are decreasing the selling price due to low domestic demand from building materials. However, Tokyo Steel Manufacturing takes precedence to the price before the sales amount and will reduce the output along the demand level.

The firm hasn’t contracted the export. But overseas users are increasing the order to Tokyo Steel Manufacturing. Their offer price is FOB US$ 520 per tonne for hot rolled steel coil from South East Asia and US$ 550 for H-Beam from Middle East or Singapore. Because yen rate is rising tone and offer price is lower than material price, Tokyo Steel Manufacturing didn’t contracted the export.