Following the sharp drop by 4.9-6.5 percent in some local steel prices for September, the major Japanese EAF-based steel producer Tokyo Steel has decided to roll over all its prices for October. The major reasons behind the decision are slightly better demand in the local market, in both longs and flat steel markets, and the fears about rises in costs due to more expensive energy in the major international markets.
Prices for H-beams, which Tokyo Steel didn’t change last month unlike other major products, have remained at JPY 124,000/mt ex-works, but the dollar equivalent has dropped again over the month by as much as $55/mt to $864/mt, taking into account the currency fluctuations.
Rebar prices, which lost JPY 5,000/mt last month, will be still at JPY 97,000/mt ex-works, while the dollar price is $43/mt at $676/mt. “In the domestic market, although business conditions in construction remain sluggish in some regions, construction work at various projects are gaining momentum. In addition, orders for steel materials for civil engineering works, which had been delayed previously, have begun,” the company said.
Tokyo Steel rolled over prices for HRC with thickness above 1.7 mm, which witnessed the largest drop last month, at JPY 115,000/mt ex-works, while the dollar equivalent of the price has slipped by $50/mt to $850/mt. “In terms of flat steel, the national inventory levels of thin sheets peaked in May and were declining, and the production of automobiles began to show signs of a gradual recovery, so the amount of processing is expected to expand,” Tokyo Steel said, adding that demand for heavy plates has remained at a good level.