Company kept its steel prices unchanged for June deliveries amid weakening sentiments in overseas coupled with higher inventory levels in domestic market.
Few of the major Japanese steelmakers ramp up crude steel production by end of financial year in March. Thus increased inventory levels kept company’s steel prices unchanged in domestic market.
In addition to this, bearish market sentiments and falling steel export offers in global market pushed Japanese steelmakers to hold steel prices stable for the straight sixth consecutive month.
Thus rebar prices continued to remain unchanged at Yen 69,000/MT and H beam prices at Yen 89,000/MT for June deliveries. Meanwhile company has also kept its 15 steel prices unchanged for next month.
Kiyoshi Imamura,Tokyo Steel’s Managing director commented that, “The U.S. and European steel markets are on a bearish tone and some countries facing weaker local currency, such as Russia and Turkey, are shipping cheaper products into Asia, weighing on prices in this region,”
Further he added that, following decline in Chinese futures Japanese steel prices may witness fall. However domestic market will tighten after July over solid construction demand, with a series of redevelopment projects in the Tokyo metropolitan area. Also plans to build new hotels across the nation to meet the growing number of foreign tourists will boost demand of steel in upcoming months.
Tokyo Steel scrap purchase prices at Utsunomiya hit 2-years low – Tokyo Steel slashed scrap purchase prices for 7-times in April. By the end of the month, H2 scrap prices in Utsunomiya located in Kanto region stood at JPY 29,000/MT.
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