Japanese EAF-based steelmaker Tokyo Steel has rolled over steel prices for September delivery, following stability last month and the JPY 3,000-5,000/mt hike for July. Though the domestic and international demand has improved lately, the producer has been still seeing the impact of Covid-19 pandemic, moreover, due to summer holidays domestic consumption has not fully improved yet. At the same time, the price increase is possible in the near future.
Tokyo Steel’s H-beam prices are at JPY 81,000/mt ($770/mt) ex-works, prices for rebar are at JPY 59,000/mt ($561/mt) ex-works. Prices for HRC with thickness above 1.7 mm have remained at JPY 65,000/mt ($618/mt) ex-works. Prices have increased only in USD, taking into account the fluctuations in exchange rates.
Strong domestic steel demand in China and overall positive sentiment in the Asian market is expected to continue in the near future, as Tokyo Steel stated. Moreover, the outlook for the domestic market is also positive. The construction industry is expected to improve in the second half of the current financial year (ending on March 31, 2021). Lower supply volume in the long steel market will also support prices. In the flat steel market in Japan, Tokyo Steel predicts better demand amid revival in the automotive industry and the supply-demand balance in the market.
