Hanwa Co. announced on Tuesday the firm will increase the reselling price of hot rolled flat steel with 1.6-12 millimeters thick by 2,000 yen per tonne in Tokyo, Osaka, Nagoya and Tohoku area effective on November 1. The firm tries to improve the profitability when the firm makes loss for the products under 62,000 yen per tonne of market price for mid-sized plate without freight. The firm said market will accept the higher price under decreasing hot coil inventory held by distributors. The inventory is expected to decrease more with lower shipment by Japanese integrated steel makers, POSCO and China Steel Corporation along with lower import from China. Hanwa expects stable offshore market also supports the move. Hanwa sees Chinese domestic price and export price is and will keep stable after the market concerned Chinese oversupply could reduce international market price. Hanwa said the domestic demand for hot rolled flat steel improved since late September. The firm expects the demand will increase when the building demand increases. The firm decided to increase the selling price to improve the profitability.
Japan Steel Scrap Composite Prices (Sangyo Press)
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