Japanese leading electric-arc steel manufacturer, Tokyo Steel Manufacturing Co Ltd, kept its steel prices unchanged for Jan’20 deliveries as steelmakers are observing the market trends over recovery in global and domestic steel prices. Thus, the company kept its steel prices unchanged for the third consecutive month owing to weakening sentiments, higher inventory levels in the domestic market, and falling steel prices in the overseas market.
Thus, effective prices of H shaped steel remained stable at JPY 83,000/MT (USD 759/MT ), and JPY 62,000/MT (USD 567/MT) for deformed steel bars (re-bars) for Jan deliveries. Before this, last month, the company kept its steel prices unchanged for Dec deliveries.
Tokyo Steel Managing Director Kiyoshi Imamura, “An overall balance of demand and supply shows a healthy sign, but we are keeping product prices steady for now to make sure markets have completely switched to an upward trend.”
Further, he added that lower inventories of construction materials and steel sheets showing signs of recovery in the domestic market. Meanwhile, prices also started to rebound from a sharp drop and expecting that the upward trend will continue.
Company hikes scrap purchase price- Tokyo Steel has hiked its scrap purchase bids by JPY 500-1000/MT at all of its 5 works on 12 Dec’19. This is the third successive price hike of the company this month.
After the said price hike, the company will now pay JPY 25,000 /MT (USD 229) for H2 scrap delivered at Tahara plant in the central region, Kyushu works in the western region and Utsunomiya works located in the Kanto region. For H2 scrap delivered to Okayama plant and Takamatsu Steel Center, the prices will be JPY 23,500/MT and JPY 22,500/MT levels respectively.
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