Japanese steel producer Tokyo Steel has continued to increase its local steel prices amid firm demand, especially from the construction industry, and higher raw material prices. It has increased all major product prices by JPY 3,000/mt, which, however, is much lower than last month’s hike (by JPY 7,000-10,000/mt) and it could not prevent the dollar equivalents of its prices from declining as the yen has fallen sharply in value since March.
Tokyo Steel’s H-beam prices have added JPY 3,000/mt to JPY 124,000/mt ex-works, which is now $990/mt, versus $1,014/mt a month ago. Other long steel product prices like striped H-beams, I-beams, channels, U-section steel and rebar have been hiked by the same amount. Tokyo Steel's rebar prices are at JPY 102,000/mt ex-works or $814/mt ($830/mt was the dollar equivalent of the price in March). “Demand for construction steel is expected to increase this year. In addition, small and medium-sized construction projects are on a recovery trend, and so future market conditions are expected to improve,” the company said.
In the flat steel segment, Tokyo Steel has also increased prices for HRC with thickness above 1.7 mm by JPY 3,000/mt to JPY 123,000/mt ex-works, while the dollar equivalent of the price has slipped to $982/mt from $1,006/mt a month ago. “There is a noticeable delay in the recovery of automobile production even after the start of the new fiscal year,” the company said, which is restraining demand for thin sheets. At the same time, demand for heavy plates, used in construction and machinery, is better.
Although prices in the global market, in Europe and the Middle East specifically, have eased from the previous highs and low demand in China is limiting the upside potential in Asia, for the near future “the international market is expected to remain at a high price due to the impact of the war in Ukraine, but we will continue to closely monitor trends in global steel supply and demand, and raw materials,” Tokyo Steel said.