Tokyo Steel to Leave Sales Price Unchanged for March

Tokyo Steel Manufacturing announced on Monday the firm left the sale price of all steel products unchanged for March contracts with domestic dealers. The firm maintains the prices unchanged for 2 months in a row. Mr. Kiyoshi Imamura, senior sales director of Tokyo Steel, said the market price upturned at overseas due to rising ferrous scrap market price and upbeat of Asian steel market while domestic steel supply is still surplus when steel makers are increasing outputs and sales before the end of Japanese major fiscal year in March.

Steel market price in Asia rose by US$ 50-60 per tonne from January. Japanese, Chinese and South Korean steel makers raised the sales prices. Japanese steel export is expected to recover since yen rate has slightly weakened along with additional credit ease by Bank of Japan. Mr. Imamura showed an expectation that weak yen rate helps operations of Japanese manufacturing industry as total. Domestic steel supply may tighten if export-oriented companies intensify production activities.

Domestic steel demand has gradually improved due to earthquake disaster reconstructions or increased large building projects around Tokyo. Tokyo Steel views domestic steel supply would tighten rapidly. Mr. Imamura indicated the firm might raise the sales price for April contracts.

The firm plans monthly output at 220,000 tonnes in February. By items, the planned production is 70,000 tonnes for H-beam, 90,000 tonnes for hot rolled coil and 35,000 tonnes for steel plate. The firm continues output adjustment along with the actual demand level. The firm also didn’t change the sales price for general contractors at 74,000 yen per tonne for H-beam, 57,000 yen for rebar and 66,000 yen for steel plate.