Japan’s electric arc steelmaker, Tokyo Steel manufacturing co ltd has hiked its July shipment prices for July shipments following sharp recovery in domestic ferrous scrap prices. The company had held shipment prices flat for two successive months May and June amid uncertainty induced by the COVID-19 outbreak.
Tokyo Steel raised its finished steel product prices by 3.5pc-7.3pc or by JPY3,000-5,000/mt ($28-46/mt) for July shipments from the set of June shipments prices, according to the company’s price circular released on Tuesday. The upward trend in the global markets, amid strong demand in China, has pushed prices up and improved sentiments in Japan.
“Steel and auto manufacturing activities in Japan are gradually resuming post the outbreak, though demand hasn’t recovered totally and still is not very bullish. The ferrous scrap prices have increased over JPY5,000-6,000/mt in a month this has pushed finished steel prices up too,” shared a company official with Davis Index.
For July, the steelmaker held its main H-shaped beams prices at JPY81,000/mt ($753/mt), up JPY5,000/mt from JPY76,000/mt for June shipment. It has raised prices of steel bars, including rebars, to JPY59,000/mt from JPY55,000/mt and hot-dip galvanized steel coils to JPY70,000/mt from JPY67,000/mt ex-plant.
In the Southeast Asian market, Tokyo Steel’s finished steel prices set the benchmark for competitor including Posco and Hyundai in South Korea, Baoshan in China and Formosa in Vietnam.
|Tokyo Steel’s July shipment prices|
|Product||Price in JPY/mt||Change M-o-M|
|Striped H steel||91000||5000|
|I shaped steel||88000||5000|
Tight supply spikes ferrous scrap prices
Japan’s domestic ferrous scrap prices surged sharply as demand recovered following a ramp-up of production in June. Tokyo Steel has announced seven successive price hikes for ferrous scrap purchase in June. Bids for #2 HMS are at JPY26,500/mt delivered Utsunomiya in Kanto region and JPY25,000/mt del Kyushu plant. Bids for busheling were at Tahara and Utsunomiya remained at JPY28,000/mt and JPY28,500/mt delivered plants, respectively.
In June, prices rose sharply by JPY5,000-6,000/mt, forcing steel mills to raise their finished steel sale prices on high input costs. However, a few participants believe that the prices could come under pressure in the coming days.