Japan: Tokyo Steel keeps steel prices stable for July sales
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Tokyo Steel, a leading Japanese electric arc furnace steel producer, has continued to keep prices stable for hot rolled coils (HRCs) (1.7-22 mm), rebar and H-beam for July 2024 sales.
- HRC (1.7-22mm): JPY 107,000/t ($679/t)
- Rebar (D13~25): JPY 98,000/t ($622/t)
- H-beam (100-300mm): JPY 127,000/t ($806/t)
Japan's Kanto region saw a decline in bids for its June scrap export tender. The average winning bid fell by JPY 1,226/t (around $8/t) to JPY 51,364/t ($327/t) on a free alongside ship (FAS) basis (it is equivalent to JPY 52,500/t on FOB basis ($334/t)) compared to May 2024 (JPY 52,590/t). The tender captured a volume of 25,000 tonnes of H2 scrap.
The dollar conversion of the FAS price declined by $6-7/t m-o-m due to the weakening Japanese yen. The yen is currently at a ten-year low, valued at JPY 157/dollar (equivalent to JPY 52,500/t on FOB basis or $334/t). The world's top steelmaker, Baosteel, has kept HRC prices stable for July sales, after increasing in June. Vietnamese steel major Formosa Ha Tinh has reduced hot rolled coil (HRC) prices by $30/t m-o-m for August 2024 shipments. Prices fell amid declined imported HRC offers as well as competitive prices from both domestic and global competitors.
Domestic steel demand is weak due to slow overseas recovery and project delays in Japan. However, infrastructure investment and labour-saving trends are expected to boost future demand. While import pressure exists, manufacturers are cutting production, potentially expecting a market improvement by autumn. Prices remain unchanged for now, with close monitoring of supply and demand trends.
