Tokyo Steel Manufacturing announced on Monday the firm reduces the selling price of all steel items for distributors for July order. The firm reduces the price by 3,000-8,000 yen per tonne for long products and by 4,000-5,000 yen for flat steels. The price down is as much as 10,000 yen including revised extra charge for some item. The across the board price down is the first time since December 2011.
The firm sees the export market price decreases while the domestic price is expected to decrease due to delayed demand. The firm tries to reestablish the market through the price cut toward large production cut in summer time and better demand in later the year. The firm adjusted the price under lower ferrous scrap cost and steel import activity. The firm reduces the selling price by 8,000 yen per tonne for H-beam, checkered H-beam and sheet pile. The price down is 6,000 yen for I-beam and channel, 5,000 yen for square pipe and 3,000 yen for concrete reinforcing steel bar. The price down is 5,000 yen for hot rolled flat steel, plate, checkered plate and hot-dip galvanizing steel and by 4,000 yen for pickling steel. The firm tries to keep the production at the demand level. The firm plans 260,000 tonnes of production in June. The production is 120,000 tonnes for hot coil including 60,000 tonnes at Tahara plant and 30,000 tonnes for export. The firm makes 85,000 tonnes of H-beam and 35,000 tonnes of plate. The firm reported the export price is FOB US$ 640-650 per tonne for hot coil and US$ 750-760 for H-beam, which decreased by around US$ 30 due to lower priced offer from China and Russia despite of the strong demand especially in Asia and Middle East. The firm reduces the export order from 50,000-60,000 tonnes in July-August. The firm offers spot price at 68,000 yen per tonne for H-beam, 56,000 yen for rebar and 63,000 yen for plate. The firm started inventory sales of H-beam through wider inventory. The firm doubles the inventory at Okayama, Kyushu and Utsunomiya plants to meet the demand with immediate delivery.