The main EAF-based steel producer in Japan, Tokyo Steel, has decided to increase flat steel product prices for local customers for April deliveries, while it has kept its long steel prices stable for now. At the same time, the company said that the downtrend in the scrap market in Japan may also see a reversal in the coming month.
Tokyo Steel has increased its price for HRC with thickness above 1.7 mm to JPY 84,000/mt ($773/mt) ex-works, up by JPY 5,000/mt ($46/mt) compared to the previous month. The same price increase has been implemented for strips, pickled and oiled coils, hot dip galvanizing coils and pipes, while for some kinds of plate prices have risen by JPY 3,000/mt ($28/mt), the company stated. “The inventory level in the [flat steel] market is still low [in Japan], while the operation of manufacturing industries such as automobile is strong. Supply continues to be tight... Due to the current exchange rate, the difference between domestic and foreign prices is widening, so the domestic market is increasing,” Tokyo Steel said.
The producer’s rebar prices have remained at JPY 73,000/mt ($672/mt) ex-works, while its H-beam prices are at JPY 93,000/mt ($856/mt) ex-works. Trading has not improved visibly in the Japanese market, preventing price increases so far.
The producer also believes that the recent scrap price decline will be short-lived in Japan and is also connected with transportation issues, but that the trend may reverse in the coming month.