Tokyo Steel Manufacturing is getting higher steel order mainly for flat steel after the firm reduced the selling price for the dealers on June 18. The firm offered bottom price through the price cut and extra charge revision. The firm sees the domestic market price shows sign to hit bottom under rebound of ferrous scrap market.
The firm left the selling price unchanged for 2 months in a row through June order under oversupply and slower demand in the domestic market. The firm’s order receipt was low in June when the buyers held the order with expectation for lower price despite of firm actual demand. The firm reduced the selling price by 3,000-8,000 yen per tonne for all steel items for July order while the firm revised the extra charge for some items. The firm offered best price to compete with import. The buyers apparently response the new price to increase the order for long and flat steel products for Tokyo Steel under rebounding ferrous scrap market. The firm tries to find timing to improve the price level toward summer time production cut and higher demand in later the year. The firm could increase the selling price for spot market depending on the scrap market.Japan Steel Scrap Composite Prices (Sangyo Press)
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