Major Japanese EAF-based steel producer Tokyo Steel has announced a further increase in its local rebar prices and also a hike in prices of H-beams and some other sections for April, while prices for flat steel have remained unchanged. Continued improvement in construction steel demand and higher costs are the main reasons behind the increases.
Tokyo Steel’s rebar prices have added another JPY 3,000/mt to JPY 103,000/mt ex-works, while the dollar equivalent price has increased at a smaller pace, by $12/mt compared to the previous month to $768/mt, taking into account the currency fluctuations. Prices for H-beams have moved up by the same amount, to JPY 127,000/mt or $947/mt, up $10/mt. “Demand for construction steel remains strong in Japan on the back of redevelopment projects, the semiconductor industry and related construction work, as well as large-scale logistics facilities. This will continue to drive demand in the future,” Tokyo Steel said.
Prices for HRC with thickness above 1.7 mm from Tokyo Steel have remained stable at JPY 115,000/mt ex-works. The dollar equivalent stands at $858/mt, down by $11/mt from the previous month. The sentiments in the flat steel market in the country have also improved amid some reduction of production due to maintenance works, which have supported the gradual decline in inventories. Also, “on the demand side, there is a gradual recovery trend in the automobile industry, which is the main market for steel plates. We look forward to a full-fledged turnaround in the product market due to increased demand,” the producer said.