Tokyo Steel Raise Steel Prices by USD 27/MT for Jan’18

Tokyo Steel Manufacturing Co Ltd, Japan’s top electric-arc furnace steelmaker, said on 18 Dec’17 that they would be increasing the steel prices for the second consecutive month by Yen 3000/MT (USD 27/MT) for the month of January amid tight market sentiments prevailing in local and global market.

Previously in Nov’17 the company decided to increase the prices by Yen 3000/MT (USD 27/MT) for the month of December owing to positive demand in domestic and global market along with hike in scrap purchase price.

Meanwhile,the total production made in December was 215,000 tonnes.Out of which 100,000 tons of H- shaped steel and 80,000 tons of hot rolled coils.However exports were around 10,000 tons and planks stood at 15,000 tons.

Imamura Managing Director,Tokyo Steel commented that “The overseas market continues to be tightened due to strong domestic demand in China and restrictions on the production of steel products due to environmental regulations.In domestic markets, inventory levels have been tightened, taking into consideration the unavoidable condition of raw materials such as auxiliary materials, scrap, and decided the consecutive increase.”

Further he added,China faces a strong demand for real estate, automobiles, social infrastructure etc resulting in high domestic prices and falling export volumes.

Tokyo Steel Manufacturing Steel prices for Jan’18 Deliveries are-

1 USD =111.80 JPY

Time schedules for Tokyo Steel’s Winter repair announced – In addition to this,the period of regular winter repair of each factory was also announced,which is starting from Jan’18 till Mar’18. For Tahara  it is from 26th Feb’18 till 2nd Mar’18.And for Kyushu it is scheduled from 15-19 Jan’18. Thus supply constraint may further push the Japanese steel prices on higher side.

Tokyo Steel’s rising domestic scrap purchase prices –Japan’s leading EAF steel producer Tokyo Steel has raised scrap purchase prices consecutively for the third time in Dec’17. As per latest price circular, prices have raised further by JPY 500/MT (USD 4.4) at all its works which would be effective from 13th Dec’17 for all grades of scrap at all five works in Japan.

Now H2 scrap fetches JPY 37,000/MT (USD 327) at largest work in central Japan-Tahara.