Japan: Nippon Steel raises domestic Feb H-beam prices by $26/t

Nippon Steel, Japan's largest integrated mill, has decided to add Yen 3,000/tonne ($26/t) to its H-beam list prices for February domestic sales with immediate effect, mainly to transfer some rising costs, according to a company official.

Nippon Steel Structural Shapes, the company's section subsidiary based in Wakayama in western Japan, is also raising its H-beam prices by Yen 3,000/t for February sales (March production), quoting that the increment is to reflect the recent rise in scrap prices and to maintain the company's stable supply of products.

The two companies last added Yen 3,000/t for November sales but then kept their prices unchanged for December and January sales to give the market more time to digest the previous hikes, as reported.

Both steelmakers do not disclose their latest actual H-beam list prices, but as of February 24 morning, SS400 grade 200x100mm H-beams in Tokyo were being transacted at Yen 110,000-111,000/t, unchanged since last October, sources shared.

"We've expected Nippon Steel to lift its H-beam prices because other H-beam producers had already decided to add Yen 3,000/t for their March sales," a Tokyo-based distributor said.

Nippon Steel's H-beam competitor - Tokyo Steel Manufacturing has announced on Monday to lift its long steel prices including H-beams by Yen 3,000/t for March sales to shift the rising input costs, as reported. And other H-beam producers such as Yamato Steel, have also decided to lift their product prices by Yen 3,000/t for March sales, Mysteel Global noted.

The Tokyo-based distributor added that H-beam stocks held by Japanese distributors have been rising, but some specifications are now out of stocks, thus overall supply has yet to soften, and demand is expected to pick up from spring. "Whenever H-beam supply becomes tighter, market prices will start rising," he predicted.

By the end of January, H-beam stocks at Nippon Steel's Tokiwakai group of some 90 H-beam distributors across Japan increased by 5.4% on month and 5.8% higher on year, totaling 199,700 tonnes - the first time to reach above 190,000 tonnes in seven months.

"The rise in stocks was due to the fact that there were less business days in January because of holidays. Japanese H-beam producers are maintaining stable output to match actual demand," a construction steel trader in Tokyo said.

The latest data released by Japan Iron & Steel Federation showed that the country produced 312,200 tonnes of H-beams in January, up 4.6% on year but down 0.4% on month, as reported.

Written by Yoko Manabe, yoko.manabe@mysteel.com

This article has been published under an article exchange agreement between Mysteel Global and SteelMint.