Tokyo Steel Manufacturing announced on Monday the firm left the selling prices of all products line unchanged for March order, for which the firm accepts by Wednesday. The firm left the prices unchanged for 2 months in a row. The firm said offshore steel price is still low level despite of slightly increase in China after the Chinese New Year holiday while Japanese steel demand keeps firm. The firm tries to keep watching the domestic and offshore market. The firm will keep the balance of supply and demand when ferrous scrap price increases and steel market players have mixed sentiment with expectation of higher and lower prices. The firm said domestic steel market keeps firm and the demand will be stronger in western Japan than eastern Japan. The firm expects the building demand keeps firm when some manufacturers build plants in local cities including Tohoku area while building demand is delayed to May and after due to slower building certification process caused by deception scandal of structural design. The firm said Chinese steel price is still low though the hot rolled coil price increased slightly from FOB 300 per tonne at the end of 2005. The firm will keep watching the market condition though the overstock adjustment is progressing worldwide. The firm expects potential higher demand when the supply balance gets better. The firm expects the hot coil output is around 50,000 tonnes in February, which is 70% lower than the capacity, due to lower order. The output has kept less than 60,000 tonnes per month since November. The firm produces around 130,000 tonnes of H-beam in February as January though the order receipt decreased by around 20% from January.
Japan Steel Scrap Composite Prices (Sangyo Press)
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