Japan’s Tokyo Steel manufacturing Co. ltd has kept the prices firm for steel products for Feb ’21 deliveries, making sure the previous price hikes get absorbed in the trade segment. Notably, the company has announced a steep hike in steel products by JPY 10,000/t for Jan ’21 deliveries.
Effective prices are mentioned below:
- H-shaped beam JPY 93,000/t ($897)
- HRC at JPY 79,000/t ($762)
SteelMint analyses factors behind the steady prices-
- Impact of COVID-19- The nation is under the state of emergency as coronavirus cases have been increasing. This will raise the risk for a double-dip recession in Japan’s economy. The Japanese Government has taken effective measures in Tokyo and other regions. Meanwhile, Finance Minister Taro Aso said “There’s no doubt it will affect January-March growth”.
- Stimulus packages- Japanese Government has announced its third stimulus package worth 73.6 trillion yen ($708 billion) which features a $20 billion green tech fund designed to support projects from renewable energy development. With the latest spending, which follows two previous packages in CY ‘20 each worth around 117 trillion yen, Japan hopes of an economic bounce back.
- Improved demand in local market– With the increase in construction sector activities and improved demand from the automotive segment, prices have increased in the domestic market. This has led to lower allocations for exports and increased prices in the domestic market.
“Steel markets abroad remain tight on the back of economic stimulus implemented by many countries, while the local market also stays tight amid lower inventories for sheet products and higher activities in public works and private projects” Tokyo Steel said in a statement.
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