Japan’s Tokyo Steel has kept its finished steel August shipment prices unchanged in an announcement on July 14. For July shipments, the steelmaker had hiked prices by $46/mt.
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.
The company official shared with Davis Index that the company has rolled over prices as they are waiting for other market competitors to reach their July shipment price levels and for the market to absorb the earlier raise.
In the Southeast Asian market, Tokyo Steel’s finished steel prices set the benchmark for its competitors including Posco and Hyundai in South Korea; Baoshan in China and Formosa in Vietnam.
|Tokyo Steel’s August Shipment Prices|
|Products||Prices in JPY/mt||Change M-o-M|
|Striped H steel||91000||0|
|I shaped steel||88000||0|
Rise steel prices in China
Chinese steel futures increased drive by a rise in iron ore import prices which reached $111/mt cfr China. On the other hand, Chinese domestic billet prices were at CNY3,400/mt ex-plant, up by $70-80/mt from the prior week.
In Japan, local steel products’ inventories remain high as manufacturing activities are yet to gain momentum. But demand is likely to rise in the coming days as restocking activities for construction steel in Japan is increasing.
International steel markets are also expected to be bullish as most economies are on a path to recovery. Steelmakers continued to hold on to their firm offers despite no immediate demand.
Domestic ferrous scrap falls
In Japan’s domestic market, ferrous scrap prices dropped by JPY3000-4000/mt since June 25, after rising in the first half of June on limited consumption rates. A fall in ferrous scrap procurement prices lowered input costs for many EAFs in Japan, aiding their profit margins.
Tokyo Steel has announced six successive price hikes for ferrous scrap purchase since June 25.
In July the mill lowered bids three times, most recently by JPY500/mt, effective July 8 at three of its works- Okayama, Kyusyu, and Takamatsu works. Prices at Tahara and Utsunomiya were unchanged for all grades. 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.