Tokyo Steel to Raise Steel Export Prices by US$ 50 in Late February

Tokyo Steel Manufacturing will announce the export price hike of steel products by US$ 50 per tonne effective after Chinese New Year holidays. The export price is expected to reach FOB US$ 700 per tonne for H-beam and FOB US$ 650 for hot rolled coil. The firm starts the price negotiations with the importers. The firm contracted h-beam export to Dongkuk Steel, South Koran major steel maker in one year and a half, which is increasing steel export thanks to strong overseas demand. Tokyo Steel’s export rate will become around 20% for January-March, strongly rising from 1-2% for April-December 2009. The firm aims to increase the steel export when domestic steel demand maintains slow.

Tokyo Steel’s product output for overseas is planned at 100,000 tonnes or less for January-March 2010, 70% of which is hot coil and 30% is H-beam. The firm contracted large-size H-beam with Dongkuk Steel at approximately 5,000 tonnes at around FOB US$ 640 per tonne for February shipment.

Tokyo Steel’s steel export was as low as 16,000 tonnes for April-December 2009. The firm passed the export contracts when offshore H-beam offer price was below FOB US$ 600 per tonne. The offer price rose in response to the demand recovery. The firm recently contracted H-beam export at FOB US$ 650 per tonne at 14,000-15,000 tonnes. The firm also concluded hot coil export at US$ 590 for hot rolled coil at about 20,000 tonnes.

Domestic steel demand keeps low. Tokyo Steel started the inventory sales to seek new sales growth ways in domestic market. The firm started the inventory sales of H-beam at Utsunomiya, Tahara, Okayama and Kyusyu iron works. The firm will complete H-beam size lineup at Tahara iron works at the end of February.