Japanese steel producer Tokyo Steel has increased its longs steel prices for the local market for March by JPY 3,000/mt ($26/mt) amid the increases seen in raw material prices and given that demand has been stable, while consumption in the construction steel sector in Japan is expected to indicate a gradual further improvement. But, as for flat steel products, the producer has decided to leave prices stable for March, as the market is not ready for an increase yet.
H-beam prices from Tokyo Steel have increased to JPY 113,000/mt ($981/mt) ex-works, while local prices for striped H-beams, I-beams, channels and U-section steel will be hiked by the same amount. Tokyo Steel has also raised rebar prices by JPY 3,000/mt to JPY 92,000/mt ($799/mt) ex-works. “Rising raw material prices and soaring energy costs are squeezing the profits of steelmakers,” Tokyo Steel said, adding, “As for construction steel in the domestic market, demand this year is expected to exceed the previous year… In the future, it is expected that the adjustment of supply and demand in the market will progress, and the movement of passing on the price of distribution in response to the price increase of manufacturers will accelerate”.
In the flat steel segment, Tokyo Steel has rolled over its prices for HRC with thickness above 1.7 mm at JPY 110,000/mt ($955/mt) ex-works, while prices for plates are also stable. “For thin sheets and coils, the recovery of automobile production has been delayed, inventories in the market are in excess, and the supply-demand balance has been sluggish at the moment,” the mill said, and the situation in the HRC market may remain the same for the near future. But demand for heavy plates is expected to remain strong, led by developments in the shipbuilding industry and limited supply.