Tokyo Steel has raised the steel prices for the third consecutive month upto Yen 2000/MT (USD 18/MT) owing to supply crunch in domestic market along with higher raw material prices and surge in transportation costs.
Tokyo Steel Manufacturing Co Ltd, Japan’s top electric-arc furnace steelmaker, on Jan 22 2018, has announced hike in the steel prices for Feb deliveries up to Yen 2000/MT (USD 18/MT).
Strong domestic demand from construction and automobiles sector amid tight supply has compelled the Japanese mills to raise steel prices in domestic market.Also rising raw material prices such as scrap and electrodes along with increased transport costs on shortage of manpower can be attributed as one of reason for hike in Japanese steel prices.
Meanwhile,the total production made in January was 200,000 tonnes.Out of which 80,000 tons of H- shaped steel and 90,000 tons of hot rolled coils.However exports were around 20,000 tons and planks stood at 15,000 tons.
Imamura Managing Director,Tokyo Steel commented that, “In both overseas and domestic markets, the market continues to be strong and inquiries remain positive, but transportation costs and raw materials surge,are more problematic.However, because of tight supply we can not meet the demands of customers”.
Further he added,the tight situation continues which propelled the manufacturers to pass on the increased costs as per market conditions which will finally permeates and uniform price increase this time.
Tokyo Steel Manufacturing Steel prices for Feb’18 Deliveries are-
| Particulars | Prices |
| H section steel | 89,000 Yen |
| Striped H shaped steel | 89,000 Yen |
| I shape Steel | 91,000 Yen |
| Thick Plate | 81,000 Yen |
| Hot Coil | 74,000 Yen |
| Hot Dip galvanized coil | 98,000 Yen |
| Hot Rolled Steel Sheet | 79,000 Yen |
| HR coils FoB | USD 580-600/MT |
| H section Steel FoB | USD 650-660/MT |
1 USD =111.80 JPY
Source-SteelMint,Iru Miru
Tokyo Steel’s scrap prices continued to remain on higher side-Japan’s leading EAF steel producer – Tokyo Steel has lifted its domestic scrap purchase prices consecutively second time in Jan’18 after keeping prices unchanged for almost a one months’ time. As per latest price circular, scrap buying prices have moved up further by JPY 1000/MT (USD 9) at Tahara and Utsunomiya works and by JPY 500/MT (USD 5) at west Japan works like Okayama ,Kyushu and Utsunomiya works which came in to effect from 17th Jan’18 for all grades of scrap at all five works in Japan. Now H2 scrap fetches JPY 38,500/MT (USD 348) at largest work in central Japan-Tahara.
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