Tokyo Steel cuts local steel prices due to international downtrend

Wednesday, 18 September 2019 14:12:47 (GMT+3)   |   Istanbul
       

One of the leading Japanese steel producers Tokyo Steel has announced a drop of JPY 2,000-3,000/mt ($18-28/mt) in its local steel prices for October delivery due to the sharp decline in prices in the international market and still high steel inventories at Japanese mills.

The producer has slashed its local rebar and H-beam prices by JPY 2,000/mt ($18.5/mt) to JPY 62,000/mt ($573/mt) ex-works and JPY 83,000/mt ($767/mt) ex-works, respectively. Offers for HRC with thickness above 1.7 mm have also been dropped by JPY 2,000/mt over the past month to JPY 67,000/mt ($619/mt) ex-works, while HR sheet prices have lost JPY 3,000/mt ($28/mt), coming to JPY 73,000/mt ($675/mt) ex-works. The downtrend in the overseas market has negatively affected the domestic market conditions, and the stagnation has been seen more than expected due to a decrease in working days due to bad weather in Japan, according to the company’s statement.

Tokyo Steel will have to cut export volumes as its prices are not competitive even after adjustments. The producer can offer HRC in the export market at about $490-500/mt FOB, while other Japanese mills have been selling at $460/mt FOB and below in early September.

 


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