Tokyo Steel announced that it will hold finished product prices unchanged for January sales on Monday. The steelmaker has kept prices for all its steel products unchanged for three consecutive months.
For January, the prices for steel bars, including rebar, will remain at JPY62,000/mt ($571/mt) while H-shaped beams price will remain at JPY83,000/mt.
Global steel prices recovered after a steep drop in November. Market participants have different opinions on whether this uptrend is sustainable. The overall balance of demand and supply is healthy in Japan.
Ferrous scrap prices
In December, Tokyo Steel announced three successive scrap price hikes in step with rising global ferrous scrap prices. In its latest price revision on Dec 12, scrap prices were raised by JPY500-1,000/mt from the prior set of prices, the company will pay JPY25,000/mt for H2 delivered to Tahara, Kyushu and Utsunomiya plants. The company’s bids for H2 delivered to Okayama and Takamatsu rose by JPY1,000/mt to JPY23,500/mt and JPY22,500/mt respectively. The spread between rebar and ferrous scrap prices stand at JPY37,000/mt at its Utsunomiya plant, narrowing by JPY2,500/mt from the prior month.
Japanese construction activities have significantly slowed down after the completion of 2020 Olympic infrastructure. However, the recent recovery in the finished steel demand has supported steel prices.