Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Tokyo Steel has scheduled annual maintenance at its four plants from July end to August, amid low domestic steel demand. The steelmaker could halt production for 4 to 10 days with electric arc furnaces undergoing regular maintenance, said an official to Davis Index. Production would regularize after maintenance works.  


Tokyo Steel’s maintenance plan
PlantsDate of startDate of end


Finished steel prices flat 

The steelmaker kept finished steel prices for August shipment unchanged on July 14. For August shipments, prices for H-shaped beams are at JPY81,000/mt ($753/mt), steel bars, including rebars at JPY59,000/mt and hot-dipped galvanized steel coils at JPY70,000/mt ex-plant.


After a sharp increase of JPY3000-5000/mt for July shipments, Tokyo Steel has held prices flat ahead of the maintenance period to help the market absorb the earlier price hike. This will balance the supply-demand gap in the Japanese market. Globally, steel markets are expected to be bullish as most economies are on a path to recovery.  


Japan’s domestic ferrous scrap prices are flat with Tokyo Steel keeping its domestic scrap purchase prices unchanged from July 8. Bids for #2 HMS were at JPY21,500/mt ($200/mt) delivered Utsunomiya plant in the Kanto region, JPY23,500/mt delivered Kyushu and JPY23,000/mt delivered Okayama plant.


Scrap consumption  

Domestic steel industry consumed a total of 504,000mt ferrous scrap in May, down by 2.7pc or 14,000mt from a month ago. Scrap consumption hit the lowest in 11 years since February 2009 when it was 486,000mt.  


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