Japan: Tokyo Steel keeps steel prices stable for Mar'24 sales

Tokyo Steel, Japan's top electric arc furnace steel producer, kept HRC (1.7-22mm) prices largely stable for March 2024 sales. In addition, the company has also kept rebar and H-beam prices stable unchanged for the same period. Notably, the company has been keeping rebar and H-beam prices stable since August 2023.

• HRC (1.7-22mm): JPY 107,000/t ($713/t)
  
  
• Rebar (D13~25): JPY 98,000/t ($653/t)
  
  
• H-beam (100-300mm): JPY 127,000/t ($847/t)
  
  

Factors influencing prices

Kanto scrap export for Feb'24 tender witnesses hike in bids: Kanto scrap export for Feb'24 tender fetched hike in bids. The Kanto scrap tender in Japan for February revealed a slight increase in bid prices. The prices rose by JPY 6/t ($0.04/t) m-o-m. A total of 15,000 t was awarded at JPY 53,087/t ($354/t) FAS. In addition, raw material prices remained stable.

Global steel prices remain supported: World's top steelmaker Baosteel has increased HRC prices by RMB 100/t ($14/t) for Mar'24 sales, after keeping flat in Feb'24. Moreover, Taiwan's China Steel Corporation (CSC) has hiked prices m-o-m for Mar'24 sales. Prices of HRC, HR plates, CRC and hot-dip galvanised coils (for building materials) have been raised by TWD 300/t ($10/t). Furthermore, market participants are waiting for Formosa Ha Tinh (FHS) price revision.

Japan's market overview: The demand for steel products continues to be weak, with no immediate hope for recovery, according to METI. While the auto industry has shown some signs of betterment, recent production cut announcements by some manufacturers have raised concerns about its sustainability. Construction activity is also likely to remain subdued, hampered by a lack of available workers and increasing material costs.