Japanese steel producer Tokyo Steel has rolled over its steel prices for the local market for January, following the stable trend in the previous month, as the company wants to make sure that the hike of JPY 3,000-5,000/mt ($26-44/mt) made in October will be fully absorbed by the market. More active Chinese steel exports and falling futures prices have increased the caution of the Japanese producer as regards the prospects for the near future.
H-beam prices from Tokyo Steel are still at JPY 111,000/mt ($976/mt) ex-works, while rebar prices are at JPY 89,000/mt ($783/mt) ex-works. “In the domestic market, inventory is at an almost appropriate level, and it is expected that material movements will become more active,” Tokyo Steel said regarding the long steel market, though adding that some labour and material shortages persists.
In the flat steel segment, Tokyo Steel has rolled over prices for HRC with thickness above 1.7 mm at JPY 110,000/mt ($967/mt) ex-works again, prices for plates are also stable, but the outlook is positive. “Demand for heavy plates is expected to remain strong, led by shipbuilding, and the supply volume is limited, so the supply-demand balance is expected to remain tight,” the company said.
As for the HR coils and sheets market, supply is also somewhat limited, but the situation will depend on the recovery of demand towards the end of the fiscal year (April 2022). Also, Tokyo Steel added, “The market is in a state of stagnation as inventories are on the rise and import steel offers are increasing due to the stagnation in the Asian steel market.”
