Major Japanese EAF-based steel producer Tokyo Steel has rolled over its steel prices for domestic sales again in August, for the third month in a row. The downtrend and demand weakness in the global market have continued in July, but the Japanese producer has decided to leave domestic prices stable, taking into account relatively firm construction activities in Japan and the better outlook for September.
Tokyo Steel’s H-beam prices have remained at JPY 124,000/mt ex-works, but the dollar equivalent is $897/mt, $21/mt lower from a month ago due to the exchange rate fluctuations. Rebar prices have been rolled over at JPY 102,000/mt ex-works or $738/mt with the dollar price level $17/mt below that in June. “ In the domestic market, construction demand remained strong, mainly amid large-scale projects. In addition, there are signs of a recovery in demand for small and medium-sized projects, but it will take some time for the nationwide market to increase prices,” Tokyo Steel stated in a note, adding that the summer steel production cuts will also support the demand-supply balance.
In the flat steel segment, demand for heavy plates in Japan has gone up and the outlook is also optimistic. But in the HRC and thin sheets market, since automotive production did not recover, demand has been weak and inventories have been on the rise. Despite the negative situation in the flat steel segment in general, Tokyo Steel has rolled over prices for HRC with thickness above 1.7 mm at JPY 123,000/mt ex-works, while the dollar equivalent of the price has slipped to $890/mt.
“The international market is still in the adjustment phase due to the recent slowdown in global demand for steel. In addition, stagnation in production activities and logistics, which remains affected by the blockade of cities due to the Covid-19 in China, has had a negative impact on steel demand, especially in the Asian region,” the company said. At the same time, the company believes that from September the demand-supply situation in the global market will improve, and the pressure on the local Japanese steel market will have diminished.
