Tokyo Steel Hikes Steel Items 3,000-5,000 Yen/t

Tokyo Steel Manufacturing announced on Monday the firm increases the selling price of steel products by 3,000-5,000 yen per tonne for distributors for March orders. The firm increases the price for all steel items as February orders to cover higher costs in a new fiscal year starting in April. The price hike is 5,000 yen for sheet steel, concrete reinforcing steel bar and wire rod and 3,000 yen for H-beam and plate.

The firm started the export negotiation for April-June shipment offering FOB US$ 700 per tonne for hot rolled coil and US$ 750 for H-beam. The firm already got orders at US$ 650 for H-beam and at US$ 590 for hot coil. The firm expects higher export volume to South Korea, India, Vietnam and Middle East when the export weight increases to near 100,000 tonnes or around 20% of the production volume in January-March compared with only 1% of production in April-December.

The firm also increases spot sales price for domestic construction to 69,000 yen per tonne for H-beam and plate and to 60,000 yen for rebar. The firm started H-beam direct sales from the total 30,000 tonnes of inventory but the sales volume is limited.

The firm plans around 40,000 tonnes of H-beam production in February including around 5,000 tonnes for export. The firm expects 30,000-40,000 tonnes of H-beam production in March and April. The firm plans 60,000-70,000 tonnes of hot coil production and 20,000-30,000 tonnes of plate production in February.