Tokyo Steel Cuts Hot Coil, Rebar, Wire Rod Price by 8,000 yen/t

Tokyo Steel Manufacturing announced on Monday the firm reduces the selling price of sheet steel, concrete reinforcing steel bar and wire rod by 8,000 yen per tonne for distributors for October, which the firm accepts until Thursday, order as reduction for September order. The hot rolled coil price decreases by total 20,000 yen or 17% through reduction for 2 months in a row and becomes same level as domestic integrated steel makers’ price. The firm left the price unchanged for H-beam, angle, channel and plate steel. The H-beam price is same level as other makers after other makers’ hike. The firm said the price reduction is adjustment to moderate level under current market condition at home and abroad. The firm tries to adjust the domestic supply by output reduction and export when slowed worldwide economy reduces steel demand. The price decreases to 92,000 yen per tonne for rebar, 105,000 yen for wire rod and 97,000 yen for hot coil. The hot coil price is almost same level as Nippon Steel’s 100,000 yen including trading firms’ commission. Tokyo Steel offers FOB US$ 950 per tonne for hot coil and US$ 1,050 for H-beam for November-December shipment, which is US$ 200 or 17% and US$ 300 or 22% lower than the peak, under decreasing offshore market. The firm indicates further reduction for domestic H-beam price depending on the import volume and price. The firm keeps the spot sales price of H-beam at 125,000 yen per tonne for November-December production. The firm reduces the inventory sales price of rebar by 8,000 yen to 94,000-95,000 yen. The firm reduces the output by 20% to around 260,000 tonnes in September to meet slower demand from 320,000-330,000 tonnes level in August. The firm plans to increase H-beam output by 10% to 130,000 tonnes while the firm reduces hot coil output by 30% to 70,000 tonnes.