Tokyo Steel Manufacturing announced on Monday the firm increases the steel selling price by 2,000-3,000 yen per tonne for long products for the distributors for January order. The firm increases the hot rolled flat steel and checkered plate price by 1,000 yen while the firm left the price unchanged for hot rolled coil and plate. The firm decided the price hike mainly for construction materials when the demand increases for redevelopment around Tokyo and rebuilding activity in damaged areas by the major earthquake.
The price hike is smaller for more than 5,000 yen per tonne increase for ferrous scrap in a month. The firm tries to fix the price increase step by step expecting higher price expectation in the market. The firm left the price unchanged for major flat steel products when offshore market shows no sign to rebound and the firm needs to compete with import products. The firm increased the flat steel products for construction market under recovering demand and low level inventory at the dealers. The firm didn’t get export order due to poor price level. The firm tries to get export order at FOB US$ 650 per tonne for hot coil while Asian market price is C&F US$ 610-620. The firm is also reluctant to get H-beam export order when the market price is just more than US$ 700 level. The firm plans to make 210,000 tonnes of steel products in December including 40,000 tonnes in Tahara plant as November. The volume is 70,000 tonnes for H-beam, 90,000 tonnes for hot coil and 35,000 tonnes for plate. The firm stops the wire rod production at Takamatsu plant by end of December. The firm also increases the selling price for building projects. The price increases by 3,000 yen to 74,000 yen per tonne for H-beam and by 3,000 yen to 56,000 yen for plate while the firm left the plate price unchanged. The firm launched chrome-free galvanizing coil for the distributors for January order. The firm also adds plate with 8 millimeters thick on menu for distributors. The firm tries to expand the menu for the distributors market while the firm already supplies the chrome-free galvanizing coil for appliances makers and the thinner plate for shipbuilders.