Major Japanese EAF-based steel producer Tokyo Steel has rolled over all its domestic steel prices for February, for the fifth month in a row. Nevertheless, the steelmaker expects that steel prices in Asia will move on an uptrend next month, and so local price rises in the future are not excluded for the Japanese domestic market either.
“In China, following the drastic easing of the zero-corona policy, there are expectations for the rebuilding of supply chains accompanying the normalization of domestic production activities and distribution. After the end of the Lunar New Year holiday, the steel market prices, including those in the surrounding areas, are expected to rise,” Tokyo Steel said in a note.
Prices for H-beams are still at JPY 124,000/mt or $970/mt ex-works. Prices in the Japanese currency have remained stable, but the dollar equivalent has continued to sharply increase, up by $62/mt over the past month due to exchange rate changes. Tokyo Steel’s rebar prices have been rolled over at JPY 97,000/mt ex-works with the dollar-based price adding $49/mt to $758/mt. The overall performance of the construction industry in Japan has been steady. “However, the current steel market remains stagnant in some regions, and, although the distribution inventory is at an appropriate level, the market has a lack of chances for an increase in prices,” the company said.
Prices for HRC with thickness above 1.7 mm from Tokyo Steel have remained at JPY 115,000/mt ex-works. The dollar equivalent is up by $58/mt over the past month to $899/mt. “There is a gradual recovery trend in the automotive industry, the main source of demand for thin steel sheets… Although it depends on the further recovery of demand [for flats] towards the end of the fiscal year, it is thought that the supply and demand balance will improve,” Tokyo Steel stated.
