Japan: Tokyo Steel keeps prices unchanged for Nov'23 deliveries

As per the latest price list released today, Tokyo Steel, Japan's leading electric arc furnace steelmaker, has maintained stable steel prices for November 2023 sales, marking the fourth consecutive month of no price changes.

Effective prices:

HRC (1.7-22mm): JPY 105,000/tonne (t) ($710/t)
Rebar (D13~25): JPY 98,000/t ($663/t)
H-beam (100-300mm): JPY 127,000/t ($859/t).

Factors supporting prices:

Mixed global cues: The Japanese steel industry leader has opted to retain its prices at their current levels due to weak demand in the export sector and a delay in construction demand. This overall lack of momentum in demand for steel products has led to the decision. Simultaneously, steel mills worldwide have either maintained their prices or decreased their monthly sales prices. For instance, China's Baosteel, the world's largest steelmaker, has decided to keep HRC prices unchanged for November 2023.

Stability in Japan's crude steel output: In September 2023, Japan's production of crude steel remained steady at 7.1 million tonnes (mnt) compared to the previous month. The Ministry of Economy, Trade and Industry (METI) in Japan, in its announcement on 12 October, 2023, stated that they anticipate a y-o-y increase of 1.7% in crude steel production for the October-December period (Q4CY23), reaching 22.33 mnt. This projection marks the second consecutive quarter of growth.

Japan's domestic demand shows mixed sentiments: Anticipated steel demand in Japan is set to maintain its strength in Q4CY23, primarily due to a rebound in the automotive market. Nonetheless, the Ministry of Economy, Trade, and Industry (METI) has cautioned about potential risks stemming from reduced demand in the construction and industrial machinery sectors, as well as uncertainties in the export market.

In terms of ordinary steel demand, Japan recorded 16.54 million tonnes (mnt), with 10.97 mnt being consumed domestically, and 5.57 mnt exported. For Q4CY23, the demand for steel products is forecasted to reach 20.5 mnt, marking a 1.3% increase from previous projections but a 0.6% decline compared to the previous year.