Tokyo Steel Manufacturing Co Ltd, Japan’s top electric-arc furnace steelmaker, said on Monday that prices are likely to increase steel prices by Yen 3000/MT (USD 27/MT) for the month of December owing to positive demand in domestic and global market along with hike in scrap purchase price. The company had kept its steel prices unchanged for Nov after two consecutive hike in past two months.
“Demand in Japan’s local market has been strong on the back of a series of redevelopment projects in central Tokyo and construction projects related to the 2020 Tokyo Olympics,” said Imamura Managing Director, Tokyo Steel.
Meanwhile demand for steel from overseas buyers have also increased since Chinese mills are planning to slash their export volumes amid preventive measures taken to control smog in the domestic market.
Thus price of steel rebar will witness the surge of Yen 3000/MT or higher by 4.8% to 65,000/Yen (USD 580/MT) and prices of U shaped steel will touch the levels of Yen 96,000/MT (USD 856/MT) in the month of Dec’17
Rising scrap purchase prices of Tokyo Steel– After four consecutive price hikes on 2nd, 8th,10th and 14th Nov’17, Tokyo Steel has again raised scrap purchase prices with effect from (18th Nov).The company has increased its scrap buying prices further by JPY 500/MT (USD 4.46) at its west Japan-based works of the company.Earlier to this, the steel maker had raised scrap purchase prices on 14 Nov’17 by USD 9/MT (JPY 1000) at its all five works Japan.
Japanese scrap prices have increased amid strong demand from steel mills. Thus rise in raw material (scrap) prices has lead to hike in steel prices.
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