Tokyo Steel to hike some prices in August on robust demand

Posted on 14 July 2021

Tokyo Steel Manufacturing Co Ltd 5423.T will raise prices in August by up to 4.7% for some of its steel products to reflect a tight market situation, Japan’s top electric-arc furnace steelmaker said on Tuesday.

The company hiked prices for its heavy plates by 4.9% this month, but left other prices unchanged to ensure the market absorbed a hike last month.

“Overseas steel markets have been strong, especially in the United States and Europe, and the prices are expected to remain solid, due to robust demand and higher prices of raw materials,” the company said in a statement.

For August, the prices of six products, including the firm’s main H-shaped beams will be boosted by 3,000 yen ($27) a tonne, or a rise of between 2.6% and 3.6%, while prices for heavy plates will be raised by 5,000 yen a tonne, or 4.7%.

Prices for H-shaped beams will rise to 106,000 yen ($960) a tonne from 103,000 yen while those of steel bars, including rebar, will go up to 86,000 yen a tonne from 83,000 yen.

The domestic market is also seen getting tighter because of a series of redevelopment projects around the capital, Tokyo, along with plans to build new logistics facilities, it added.

Tokyo Steel’s pricing is closely watched by Asian rivals, such as South Korea’s POSCO 005490.KS and Hyundai Steel 004020.KS, and China’s Baoshan Iron & Steel Co Ltd (Baosteel) 600019.SS.

Source : Reuters