The major Japanese EAF-based steel producer Tokyo Steel has decided to roll over all its prices for November, keeping prices stable for the second month in a row, after a drop in prices for September. The lack of demand in the international market, rising energy costs and declining profitability have been impacting producers around the globe, though improved local demand in Japan has provided some support for Tokyo Steel. The company said that, if production costs continue to go up, it may decide to increase prices in the future.
Prices for H-beams are still at JPY 124,000/mt or $866/mt ex-works, with the dollar equivalent changing just slightly from the past month, increasing by $2/mt due to exchange rate fluctuations. Rebar prices have remained at JPY 97,000/mt ($678/mt) ex-works. “In addition to large-scale nationwide construction projects, steel frame processing remains busy, mainly among major fabricators, due to capital investment projects in the manufacturing industry, and small and medium-sized projects are on the rise,” Tokyo Steel said in its statement.
Demand for flat steel products in Japan has also posted some improvement, but still lacks strength, lagging behind demand for long products. Tokyo Steel has rolled over its prices for HRC with thickness above 1.7 mm at JPY 115,000/mt or $804/mt ex-works.
“In Europe and the United States, the Covid-19 pandemic is gradually coming to an end and the flow of people is becoming more active, but, due to inflation control policies and soaring energy prices, the economic outlook is uncertain and steel demand is lackluster. The environment in the Asian region is similar.” the producer stated.
Tokyo Steel has also added that it is becoming inevitable that manufacturers' costs will rise further and it is expected that it will be necessary to pass this on to product prices in the future.