Tokyo Steel Reduces All Items by 3,000-10,000 yen/t

Tokyo Steel Manufacturing announced on Monday the firm decreases the selling price of all items by 3,000-10,000 yen per tonne for distributors for March order. The firm tries to compete with import steels and to increase the order receipt through the across the board price cut, which is the first time in 3 months.

The firm reduces wire rod price by 3,000 yen per tonne and other long products by 5,000 yen while the firm reduces flat products by 10,000 yen. The price decreases by 55,000 yen or more than 40% for H-beam and by 60,000 yen or more than 50% for hot rolled coil from the peak in August order. The new price is 52,000 yen per tonne for concrete reinforcing steel bar, 73,000 yen for H-beam, 57,000 yen for hot coil and 70,000 yen for plate. The firm also reduces the spot selling price of H-beam and rebar by 5,000 yen to 78,000 yen and 58,000 yen respectively.

The firm tries to compete with cheaper imports with US$ 550-600 per tonne for hot coil, less than US$ 700 for H-beam and around US$ 600 for plate.

The firm’s production level is 50,000-60,000 tonnes per month for hot coil, less than 70,000 tonnes for H-beam and 20,000-30,000 tonnes for plate, which is 50% less than the peak in August 2008. The firm tries to increase the production level with more order through the price cut.