Tokyo Steel to Hike 3,000-5,000 yen/t for All Steel Items

Tokyo Steel Manufacturing announced on Tuesday the firm increases steel selling price for all items for distributors for October order, which is the first across the board hike in 7 months. The firm increases the selling price by 5,000 yen per tonne for shapes and by 3,000 yen for concrete reinforcing steel bar, wire rod and flat steel. With the price hike, domestic steel market price could hit bottom and rebound.

The firm recognizes building and civil work steel demand shows sign to recover when construction projects around Tokyo restart the activity while steel dealers’ inventory decreases to normal level. The firm expects the steel market improves when automakers increase the operation to full capacity level. The firm decided the price hike to improve the profitability when ferrous scrap price keeps high level.

The firm plans to increase the production level gradually to meet higher demand. The firm plans 230,000 tonnes production in October and 240,000 tonnes in November compared with 210,000 tonnes in September. The firm plans to increase the hot rolled coil output to 120,000 tonnes in October and 130,000 tonnes in November from 110,000 tonnes in September. The firm also increases the H-beam output to 70,000 tonnes in October and 80,000 tonnes in November from 60,000 tonnes in September. The firm plans to increase the major products’ output by 10,000 tonnes per month.

The firm increased the spot selling price for projects effective on Tuesday. The firm increased the price by 5,000 yen to 81,000 yen per tonne for H-beam, by 3,000 yen to 63,000 yen for rebar and by 3,000 yen to 76,000 yen for plate steel.