Japan Dealers’ Mixed Reactions to Tokyo Steel’s Price Move

Japanese steel dealers extend market watching period for weeks when Tokyo Steel Manufacturing keeps the selling price for May order. A shape dealer said the firm prepared for reselling price hike after expected Tokyo Steel’s hike. The dealers could increase the offer after major holiday through early May.

H-beam price is 72,000-74,000 yen per tonne around Tokyo. The dealers try to find timing to increase the offer when Nippon Steel already increased the selling price by total 5,000 yen. The dealers lost the immediate timing due to Tokyo Steel’s move. The dealers now watch other makers’ move.

Tokyo Steel’s price freeze was no surprise for sheet steel dealers due to slow demand. JFE Steel announced 3,000-5,000 yen per tonne of sheet steel hike but the dealers cannot pass the higher cost price on the reselling price.

Plate dealers also welcome Tokyo Steel’s price move when some of the dealers expected potential price cut by Tokyo Steel. The dealers expect the market price could be supported by integrated steel makers’ price hike.