Tokyo Steel Raises Flat Steel Prices by 2,000-4,000 yen/t

Tokyo Steel Manufacturing announced on Tuesday the firm increases the selling price by 2,000-4,000 yen per tonne for distributors for May order, which the firm accepts the order to April 20. The firm increases the hot rolled coil price by 4,000 yen to 62,000 yen and the concrete reinforcing steel bar price by 2,000 yen to 56,000 yen. The firm tries to increase the undervalued price when offshore market increases mainly for flat steel under strong demand. The firm exports hot coil for April-May shipment for the first time in a year. The firm is negotiating with Asian buyers for hot coil export price at FOB US$ 540 per tonne for May-June shipment. The price increased by US$ 140 or 80% from recent bottom of US$ 300 in the end of 2005. Under the condition, Tokyo Steel increases the price by 4,000 yen per tonne for sheet steel and by 2,000 yen for plate for domestic market. The domestic demand is slower than offshore market though domestic construction market keeps firm for major commercial facilities and buildings. Tokyo Steel said the H-beam order is slow due to higher import. The firm increases the rebar price by 2,000 yen per tonne while the firm left sections prices unchanged. The firm reduces the H-beam output in April from around 160,000 tonnes in March after the increase from 135,000 tonnes in February. The firm increases the hot coil output to 70,000-80,000 tonnes in April from monthly 50,000-60,000 tonnes since November 2005. The firm expects the hot coil output reaches 100,000 tonnes due to the higher export. The firm reduces the extra charge for hot rolled plate and checkered plate with 12 millimeters diameter from 2,000 yen per tonne to 1,000 yen starting May order.