Tokyo Steel Cuts All Steel Items by 5,000 yen/t

Tokyo Steel Manufacturing announced on Monday the firm decreases steel selling price by 5,000 yen per tonne for all items for distributors for November order. The full scale price cut is first time since September.

The firm sees domestic construction demand is improving due to major building projects around Tokyo and rebuilding activity in damaged areas by the major earthquake. However, the firm recognizes international steel price decreases under uncertainty especially due to European financial crisis. The firm sees no sign for recovery in decreasing ferrous scrap price. Tokyo Steel already reduced scrap purchase price by 4,000-6,000 yen per tonne through 7-8 times reductions depending on the plants.

The firm tries to adjust the selling price to the actual market level through the price cut when domestic price is higher than international level. The firm also adjusts the production to meet the demand level while the firm watches import situation under higher yen rate.

The firm plans around 220,000 tonnes of production in October. The plan covers around 70,000 tonnes of H-beam, around 90,000 tonnes of hot rolled coil including around 40,000 tonnes at Tahara plant and 35,000-40,000 tonnes of plate.

The firm decreased the spot based selling price by 5,000 yen per tonne on Monday. The new price is 76,000 yen for H-beam, 58,000 yen for concrete reinforcing steel bar and 71,000 yen for plate.

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