Japanese electric arc steelmaker Tokyo Steel has announced a price hike of 2.54-4.64pc for its finished steel products for August shipments. Prices for heavy plates rose by JPY5,000/mt ($45/mt), 4.63pc from July shipments amid steady demand. August marked a second successive month of price rise.
The steelmaker also raised its construction steel product prices, including rebar, H beam, I beam, and channels by JPY3,000/mt ($27/mt), an increase of 2.54-3.61pc depending on the product. Flat steel product prices were kept unchanged to allow the market to absorb the previous price hikes.
The rise indicates an improvement in domestic steel demand, firm global prices, and supply crunch.
Japan has also announced a series of redevelopment projects, including new port facilities in and around Tokyo.
The company officials attributed the price hike to bullish demand in the overseas steel markets, especially the United States and Europe. Steel prices are likely to stay elevated due to robust demand and firm input costs due to bullish ferrous scrap and iron ore.
Tokyo Steel’s August shipment prices
|Tokyo Steel’s August shipment prices|
|Products||Prices in JPY/mt||Change against July prices||M-o-M pc Change|
|Striped H steel||116000||3000||2.65|
For August shipments, rebar (D13-25) prices are at JPY86,000/mt ($779/mt) ex-works, while prices of U-shaped steel sheet piles are at JPY118,000/mt. The company will offer H-shaped beams at JPY106,000/mt ex-works.
For flat steel products, sheet prices, including hot-rolled coils (HRC), were unchanged at JPY116,000/mt from June. Color coils prices are at JPY123,000/mt, while pickled-and-oiled coils will be offered at JPY125,000/mt ex-works.
In the Asian markets, Tokyo steel’s finished product prices provide a benchmark for other steelmakers, including Posco, Hyundai, Baoshan, JSW, and Formosa.
The EAF maker cut its ferrous scrap purchase prices by JPY500/mt ($4.5/mt) for deliveries to Tahara and Kyushu works, effective July 10, after average bids at the July Kanto tender saw a decline of around $12/mt.
After the revision, bids for #2 HMS were at JPY51,000/mt ($463.26/mt) delivered Tahara, and JPY49,000/mt ($445.09/mt) delivered Utsunomiya.
For its other works, the steelmaker has kept its bids unchanged from June 24.