Tokyo Steel’s Price Cut Impacts Steel Sheet Dealers

Steel sheet dealers were shocked around Tokyo by announcement of price cut by Tokyo Steel Manufacturing, Japanese largest electric furnace maker. One dealer source said price competition becomes severe by price cut of Tokyo Steel, users may require price cut to dealers strongly and the market price must have been decrease.

Steel sheet market price had been flat with weak tone when price negotiation by integrated steel makers and major users came to a conclusion for largely price hike and production of manufacturing industry recovered rapidly despite of low demand.

Many steel makers keep stance of price hike. However, it is avoidable that the market price changes by Tokyo Steel’s price cut. One dealer source said users place premium on cost and may purchase steel products made by Tokyo Steel for general-purpose filed.

Plate dealers were discouraged, too. Some plate dealers Tokyo Steel leaves sales price unchanged when the market looked to hit bottom. One plate dealer source said the market price gains speed to decrease.