Tokyo Steel Increases Rebar Price by 2,000 y/t in May Order

Tokyo Steel Manufacturing, Japanese biggest electric furnace maker announced on Monday the firm raised the selling price of rebar by 2,000 yen per tonne for dealers in May order and didn’t change the selling price of other products. The firm increased the rebar price for the first time in 3 months and increased to 51,000 yen. The firm didn’t change the selling price of other products for the first time in 3 months when the inventory adjustment of other products is progressing. The firm has decreased the price for 2 consecutive months from March order. The firm said the market price is likely to hit the bottom and the firm may raise the selling price of H-beam in June order. The firm started the sales of hot rolled coil for hot dip galvanized steel coil for the size with 1.6-2.3 millimeters thick in May order.

The firm’s hot rolled coil output decreased to over 10,000 tonnes in March and was record low due to slow demand and is expected to decrease by 60% in April from last summer when was highest price in last year. The firm’s output is expected to be around 50000 tonnes for H-beam, around 30000 tonnes for hot rolled coil and around 10,000 tonnes for plate. The firm said the inventory adjustment is progressing by steel makers’ output reduction, and dealers and processors’ sales came down for inventory reduction or changing money.

The firm’s export negotiation grows stagnant. Odder price by overseas importers is FOB US$ 400-450 for hot rolled coil against Tokyo Steel and FOB US$ 500 for H-beam. Their offer is much, but the firm can’t conclude an agreement with overseas importers due to lower offer price. The firm said there isn’t possible Japanese steel import increases when the firm has reduced the selling price from early on.