Tokyo steel raised its domestic finished flat steel product prices by JPY5,000-13,000/mt ($46-120/mt) for May deliveries. The EAF-based steelmaker hiked flat prices for the second time this month on Monday, April 19, while keeping long prices flat. The revision was to align the company’s prices with the global trend despite concerns around the second wave of COVID-19. Finished flat steel prices, globally, have remained bullish and there was a huge gap between international and domestic sales prices in Japan.
For April deliveries, Tokyo Steel had raised finished flat steel sales prices by JPY3,000-5,000/mt ($28-46/mt). Finished long steel prices have remained unchanged in April to ensure the earlier price hikes are successfully absorbed by the consumers.
Tokyo steel raised prices of coils, including hot-rolled coils (HRC), checkered coils, pickled and oiled coils to JPY100,000/mt, JPY107,000/mt, JPY101,000/mt ex-works, while rebar prices were kept unchanged at JPY73,000/mt ex-works.
| Tokyo Steel’s May shipment prices | ||
|---|---|---|
| Products | Prices in JPY/mt | Change MoM |
| H Beams | 101,000 | 0 |
| Striped H steel | 103,000 | 0 |
| I beam | 100,000 | 0 |
| Channel steel | 89,000 | 0 |
| HRC | 100,000 | 10,000 |
| D bar | 73,000 | 0 |
Elevated electricity charges and high ferrous scrap prices have narrowed the margins of many EAF-based mills in Japan. While high raw material prices in China despite Tangshan’s production curbs has also impacted global sentiment.
In the Asian markets, Tokyo steel’s prices are followed by others steelmakers, including Posco, Hyundai, Baoshan, JSW steel, and Formosa.
Two hikes for Fe scrap in April
Tokyo steel cut ferrous scrap purchase prices six times in March after they hit a record high. In April, however, the trend reversed and the steelmaker had to hikes prices twice on firm global cues. The steelmaker raised scrap bids by JPY1,000-1,500/mt ($9-13/mt) for all the grades at all five works, effective April 15. Revised bids for domestic #2 HMS are at JPY44,000/mt ($406/mt) delivered Tahara, JPY43,000/mt delivered Okayama, JPY43,000/mt delivered Kyushu, JPY42,000/mt delivered Utsunomiya, and JPY42,000/mt delivered Takamatsu.
($1=JPY108.4)