Tokyo Steel Cuts All Steel Items by 3,000-7,000 yen/t

Tokyo Steel Manufacturing announced on Monday the firm reduces the selling price by 3,000-7,000 yen per tonne for all steel items for distributors for November order. The across the board price cut is the first time in 4 months. The firm tries to compete with cheaper import when the import activity increases under higher yen rate. The firm expects the price cut would encourage the distributors’ market to find the bottom and the firm could increase the price again as early as December order depending on ferrous scrap market.

The price cut depends on the market condition. The firm reduces the selling price by 5,000 yen per tonne for H-beam and hot rolled coil, by 3,000 yen for plate and by 7,000 yen for channel, I-beam and galvanizing steel.

The firm minimizes the price cut for plate steel under tight supply when the demand increases for UO steel pipe and shipbuilding applications. The firm conducts wide price cut for galvanizing steel due to competition with Chinese import and for channel and I-beam to level the price to domestic competitors.

The firm also reduces the spot selling price for each project. The price decreases by 5,000 yen to 73,000 yen per tonne for H-beam and by 54,000 yen and by 3,000 yen to 69,000 yen for plate.

The firm cannot receive new export order recently while the offer is FOB 670 per tonne for hot coil and US$ 750 for H-beam as last month. However, the firm couldn’t get new order when the export market price is US$ 610 for hot coil and US$ 670-680 for H-beam.

The firm expects the production level is around 200,000 tonnes for all items in October as September. The volume is 20,000 tonnes in steel making in Tahara plant while the production is around 60,000 tonnes for H-beam and 35,000 tonnes for plate as September.