After an increase in its pickled and oiled sheet prices last month, Japanese steel producer Tokyo Steel has decided to roll over all its domestic prices for October.
Rebar and H-beam prices from Tokyo Steel will remain stable at JPY 86,000/mt ($782/mt) ex-works and JPY 106,000/mt ($963/mt) ex-works, respectively. Previously, the producer had hiked prices for these products by JPY 3,000/mt in July. And though overall sentiment is good, “the progress of large-scale construction projects is delayed,” Tokyo Steel stated, adding that expectations for the future are positive with market conditions forecasted to improve toward the next fiscal year.
Prices for HRC with thickness above 1.7 mm have remained at JPY 110,000/mt ($1,000/mt) ex-works. Flat steel prices in Japan have been supported strongly by the tight supply from the major mills, but “in terms of demand, it is difficult to predict the impact of the reduction in automobile production,” according to Tokyo Steel.
In the international market, the signals are also different. While demand has been hit hard in Southeast Asia due to the spread of Covid-19 and lockdowns, China's local steel market has been showing an increase and the production cuts there will keep the supply in the international market checked.