Tokyo Steel, Japan’s top electric arc furnace steel producer, has hiked HRC (1.7-22mm) by JPY 2,000/tonne (t) ($14/t) for February 2024 sales . However, they have kept Rebar and H-beam prices stable unchanged for the same period. Notably, the company has been keeping prices stable since August 2023.
Effective prices:
- HRC (1.7-22mm): JPY 107,000/t ($723/t)
- Rebar (D13~25): JPY 98,000/t ($662/t)
- H-beam (100-300mm): JPY 127,000/t ($858/t)
Factors influencing prices
Kanto scrap export for Jan’24 tender fetches hike in bids: Kanto scrap export for Jan’24 tender fetched hike in bids. The Kanto scrap tender in Japan for January revealed an increase in bid prices. The prices rose by JPY 2,061/t ($14/t) m-o-m. A total of 15,000 t was awarded at JPY 53,081/t ($358/t) FAS. The surge is attributed to robust overseas demand and the impact of the JPY’s depreciation.
Fluctuations in currency: The dollar’s recent rally against the Japanese yen (JPY) has paused, with the yen gaining ground on speculation of Japan’s possible policy shift away from ultra-low interest rates. Current level of JPY is at 148 levels against $1.
Global steel prices remain supported: Vietnamese steel major, Formosa Ha Tinh, has increased HRC prices by $27-35/t m-o-m for end-March to early-April 2024 shipments, as per the quantity booked. In addition, Europe’s largest steelmaker, ArcelorMittal, has increased its offer for hot-rolled coil (HRC) by EUR 50/t ($54/t) on limited import options and low domestic supply. The company is now offering EUR 800/t ($871/t) for HRC to northwest European buyers.
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