The Japanese leading electric-arc steel manufacturer, Tokyo Steel, has kept its steel prices steady for Feb’20 deliveries since the company is observing the current market trends and awaits confirmation on recovery in steel prices both in the overseas and domestic market.
Thus, on the back of slower growth in market activities owing to the delayed construction projects amid labor shortages and limited processing capacities, the company keeps steel prices stable for the fourth consecutive month.
Thus, effective prices of H shaped steel continue to hover at JPY 83,000/MT (USD 753.35/MT) and JPY 62,000/MT (USD 562.74/MT) for deformed steel bars (re-bars) for Feb deliveries.
“Overseas steel prices have been recovering since late last year, and the rally may even pick up after China’s Lunar New Year break.” was what Kiyoshi Imamura, MD- Tokyo Steel said.
He further added, “Steelmakers want to raise prices of products to reflect rising costs such as transportation and secondary materials, but we are keeping our product prices steady as we want to make sure markets have completely bottomed out.”
Prior this, in Jan’20 the company had kept the prices unchanged amid weakening sentiments and higher inventory levels in the domestic market.
Scrap purchase prices unchanged since 12 Dec’19 – Tokyo Steel hiked its scrap purchase price thrice during the month of Dec’19, as the purchase bids were increased by around JPY 1000-1500/MT in total over the month for all its works. After the last price hike made on 12 Dec’19, the steelmaker has not revised scrap purchase prices so far.
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