Tokyo Steel to Raise Steel Prices by USD 27/MT on Expensive Raw Material

Tokyo Steel has raised steel prices by Yen 3000/MT for all the products amid rising raw material cost coupled with bullish sentiments prevailing in overseas market.

Tokyo Steel-Japan’s topmost electric arc furnace steelmaker has raised the prices for all steel products by Yen 3000/MT (USD 27) in Oct’17 over higher raw material cost along with rising export offers in global market.Besides this robust demand in Japanese domestic market leads to supply crunch resulting to surge in Japan steel prices.

Last month the company had announced price hike for 11 steel products by Yen 2,000-3000/MT for September.

The production schedule of Tokyo Steel in Sep’17 was for 1,95,000 MT.Out of which H-shaped steel 95,000 MT and hot coils of 70,000 MT. Besides this quantity for export comprised of 10,000 MT and plates of 10,000 MT.

In context to rise in prices,Kiyoshi Immamura,Managing Director of Tokyo Steel quoted,”It is a comprehensive judgement to raise the price this time, as there is disparity between the overseas market and the Japanese market, that is, the Japanese market is cheaper than the overseas market. It is because of this factor that the inquiries from abroad to Japan are strong, because the purchase price is cheap and attractive from overseas.”

Another reason that has resulted Tokyo Steel to raise prices is supply shortage with less inventories with companies along with strong demand in Japan. This demand-supply mismatch has pushed up steel prices.

Tokyo Steel prices for Oct’17 Deliveries

1 USD =111.64JPY
Source-SteelMint Research