Major Japanese EAF-based steel producer Tokyo Steel has announced a price cut for a number of steel products in the local market with the largest fall seen in the flat steel segment, HRC in particular, by JPY 8,000/mt or 6.5 percent for September deliveries. Rebar prices have also been corrected down – by JPY 5,000/mt or $37/mt, while H-beam prices have remained stable in the local market amid better demand.
Bearish sentiments in the international market, weak China and easing local demand in some segments have finally led to the cuts in Japanese steel prices, while prices were stable for three months in a row before this move. Tokyo Steel dropped prices for HRC with thickness above 1.7 mm by JPY 8,000/mt to JPY 115,000/mt ex-works, while the dollar equivalent of the price has slipped to $852/mt, $38/mt below last month due to the currency fluctuations. Pickled and oiled coils, and hot-dip galvanized coils prices have been reduced by a similar amount for September. Prices for heavy plates will remain stable. “Demand for thick steel plates is expected to continue to grow steadily, not only for construction but also for shipbuilding and industrial machinery, and other manufacturing industries. On the other hand, as for the thinner steel sheets, production recovery in automobile-related industries, which are the main demand destinations, has been slow, and market inventories have remained at a high level,” the company said, adding that the cheaper imports have been also putting pressure on the situation in the flat steel segment.
Rebar prices have lost JPY 5,000/mt or 4.9 percent over the month, coming to JPY 97,000/mt ex-works or $719/mt with the dollar price level $19/mt below that in July, taking into account currency fluctuations. Some other flat steel product prices, hot-rolled steel sheets and pickled and oiled steel sheets in particular, as well as square steel pipes have also seen a decline of JPY 5,000/mt.
Prices for H-beams and other sections have been rolled over for September, taking into account stronger demand compared to other products. They are at JPY 124,000/mt ex-works, but the dollar equivalent is $919/mt, up $21/mt from last month due to currency changes.
“Demand for large-scale steel frame construction remained strong, and there were many inquiries for projects from the second half of the fiscal year… However, although reinforced concrete construction is driven by large-scale demand for distribution warehouses, etc., the re-expansion of the Corona crisis has caused labor shortages and construction delays, resulting in lack of excitement, and the actual market for deformed steel bars is on a downward trend”, Tokyo Steel said.