Japan: Tokyo Steel keeps steel prices flat for June'24 sales
...
Tokyo Steel, Japan's major electric arc furnace steel manufacturer, has continued to keep HRC (1.7-22 mm) prices unchanged for June 2024 shipments. In addition, the company has also kept prices stable for rebar and H-beam for the same time period.
- HRC (1.7-22mm): JPY 107,000/t ($687/t)
- Rebar (D13~25): JPY 98,000/t ($629/t)
- H-beam (100-300mm): JPY 127,000/t ($815/t)
Kanto scrap export prices increase m-o-m: Japan's Kanto region saw a rise in bids for its May 2024 scrap export tender. The average bid price increased by JPY 1,503/t ($10/t) to JPY 52,590/t ($338/t) FAS basis, compared to April 2024. The tender successfully captured a volume of 20,000 tonnes (t) of H2 scrap.
Global steel prices remain supported: World's leading steelmaker, Baosteel, has increased HRC prices by RMB 50/tonne ($7/t) m-o-m for June, 2024 sales. Moreover, Taiwan's China Steel Corporation (CSC) has hiked prices m-o-m for June, 2024 sales. Prices of HRC, HR plates, CRC have been raised by TWD 300/t ($9/t). Furthermore, Vietnamese steel major, Formosa Ha Tinh, has increased hot rolled coil (HRC) prices by $15/t (t) m-o-m for July 2024 shipments. Prices rose amid increased imported HRC offers as well as higher quotes from both domestic and global competitors.
Weaker domestic market sentiments: Steel demand in Japan's domestic market is sluggish despite promising new projects. Contractors are cautious due to shorter work hours and labour shortages. However, distributors have healthy inventory and have not lowered prices, particularly for larger items. This suggests an expectation that demand will pick up as supply and demand adjust.
While concerns exist regarding imported steel, a cautious purchasing approach by distributors and a decrease in supply from domestic manufacturers due to the weak yen are keeping prices stable. Current level of JPY is at 156 levels against $1.
