Japanese electric arc steelmaker Tokyo steel hiked finished steel prices by JPY10,000-17,000/mt ($92-156/mt) or 9.5-17.6pc for June shipments to match global steel prices. Expectations of a stronger domestic demand also supported the price hike.
Steel demand from the construction sector is expected to improve gradually in Japan. Meanwhile, global prices have remained robust driven by strong economic recoveries in major countries post the slump due to the COVID-19 pandemic.
|Tokyo Steel’s June shipment prices|
|Products||Prices in JPY/mt||Change MoM|
|Striped H steel||113000||10,000|
Tokyo Steel hiked rebar prices by JPY10,000/mt to JPY83,000/mt ex-works for June deliveries, while prices of U-shaped steel sheet piles are up by 9.5pc or JPY10,000/mt at JPY115,000/mt. Price of H-shaped beams is higher by 10.8pc at JPY103,000/mt while prices of coils, including hot-rolled coils (HRC) is up JPY16,000/mt at JPY116,000/mt and checkered coils JPY118,000/mt, pickled and oiled coils is offered at JPY123,000/mt ex-works, up JPY17,000/mt, respectively.
Earlier, for May deliveries, Tokyo Steel had raised finished flat steel sales prices by JPY5,000-13,000/mt ($46-120/mt). Finished long steel prices have remained unchanged for the second successive month in May.
Finished flat steel prices, globally, have remained bullish creating a huge gap between international and domestic steel prices in Japan. High raw material prices in China amid Tangshan’s production curbs have boosted global sentiment. Demand remained bullish amid tight supply. Chinese steel futures for construction-grade rebar and wire rod on the Shanghai Futures Exchange reported a jump of over 40pc since the beginning of 2021.
In the Asian markets, Tokyo steel’s finished product prices are followed by other steelmakers, including Posco, Hyundai, Baoshan, JSW and Formosa.
Four price hikes for ferrous scrap
The steelmaker announced four price hikes so far in May. With the latest revision raising scrap purchase bids by JPY1,500/mt ($14/mt) at Tahara and Kyushu works, effective May 19. Bids for all the grades at Utsunomiya, Okayama and Takamatsu works are up by JPY1,000/mt ($9/mt). Revised bids for domestic #2 HMS are at JPY51,500/mt ($473/mt) delivered Tahara, JPY50,000/mt delivered Okayama and Kyushu, JPY48,000/mt delivered Utsunomiya, and JPY48,500/mt delivered Takamatsu. Prices rose by JPY6,000-8,000/mt from the prior month.