Tokyo Steel Manufacturing announced on Monday the firm left the selling price unchanged for all steel items for the distributors for February order. The across the board price freeze is for the first time since August 2011. The firm decided the price policy despite of lower ferrous scrap cost. The firm emphasized the scrap cost decrease in January is smaller than the cost increase in December while the firm is willing to increase the selling price depending on market condition at home and abroad.Tokyo Steel is reluctant to get new export order due to unattractive price level under high yen rate when the offshore demand is slow due to European crisis and Chinese inflation fighting. The firm expects Asian steel market could be positive when China could ease financial squeeze after Chinese New Year and Asian steel makers try to increase the steel price. Tokyo Steel recognizes domestic steel demand increases especially for rebuilding activity in damaged areas by the major earthquake. The firm also sees building activity increases around Tokyo. The firm expects domestic construction steel demand will increase in 2012 from 2011. The firm plans 200,000 tonnes of steel products output in January. The firm plans to make 70,000 tonnes of H-beam, 30,000 tonnes of plate and 70,000 tonnes of hot rolled coil including 20,000 tonnes of production at Tahara plant. The firm adjusts the production level to the demand condition. The firm confirmed the selling price is 74,000 yen per tonne for H-beam, 57,000 yen for concrete reinforcing steel bar and 66,000 yen for plate for spot market.
LME Settlement prices05/08/2013
Japan Steel Scrap Composite Prices (Sangyo Press)05/10/2013
|22100YEN (-200)||25300YEN (-200)|
|US$216.75 (-1.96)||US$248.14 (-1.96)|
* Average of Tokyo, Osaka and Nagoya prices
* What is Japan Steel Scrap Composite Prices