Major Japanese EAF-based steel producer Tokyo Steel has rolled over all its domestic steel prices for January, for the fourth month in a row, but in general the expectations of the steelmaker have improved and it is cautiously optimistic for the price trend in the first quarter of 2023, while a mainly bearish mood persisted for the past few months.
Prices for H-beams have remained at JPY 124,000/mt or $908/mt ex-works. Though prices in the Japanese currency have remained stable, the dollar equivalent has increased by $31/mt since the previous month due to exchange rate fluctuations. Tokyo Steel’s rebar prices are still at JPY 97,000/mt ex-works, while the dollar price has increased by $23/mt over the past month to $709/mt. “In response to the easing of the zero-Covid policy in China and the promotion of infrastructure investments, expectations for a recovery in demand are increasing,” Tokyo Steel stated. The company also added that, since Japanese construction companies have better plans for next year, “the demand environment is expected to be strong in the next fiscal year [starts from April 2024] and beyond”.
Prices for HRC with thickness above 1.7 mm from Tokyo Steel are stable at JPY 115,000/mt or $841/mt ex-works (dollar equivalent is up by $28/mt). “There is a gradual recovery trend in the automotive industry, which is the main demand field for steel sheets, and further increases are expected from the beginning of the year. As for thick plates, the shipbuilding, construction machinery and industrial machinery sectors are generally continuing to perform well, and from the next fiscal year onwards construction demand is expected to become even busier,” Tokyo Steel said, commenting on the situation in the flat steel sector.