Major Japanese EAF-based steel producer Tokyo Steel has decided to roll over all its domestic steel prices for December, for the third month in a row, though pressure has been mounting from weak global steel demand and the delayed economic recovery in China. Negative factors have not resulted in price cuts from Tokyo Steel as “costs will increase due to rising energy prices,” the company said.
Prices for H-beams are still at JPY 124,000/mt or $877/mt ex-works, while the dollar equivalent has increased by $11/mt since the previous month due to the exchange rate fluctuations. Tokyo Steel’s rebar prices are stable at JPY 97,000/mt ($686/mt, up by $8/mt on dollar basis over the month) ex-works. Demand for long products in Japan has been relatively firm, but given the pressure from the international market there has been no interest from mills to increase supply.
The situation in the flat steel market in Japan is still more difficult than in the longs market. Prices for HRC with thickness above 1.7 mm by Tokyo Steel have remained at JPY 115,000/mt or $813/mt ex-works (dollar equivalent is up by $9/mt). “Automobile-related steel demand has only started its moderate recovery and steel market inventories across the country are on a gradual downward trend, but the decline has not yet reached an appropriate level, and the domestic market continues to lack momentum,” Tokyo Steel stated. The gradual devaluation of the Japanese currency has been also stimulating exports from the country.
