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

Japan's top electric arc furnace steel producer, Tokyo Steel, has kept HRC (1.7-22mm) prices stable for May 2024 sales. Moreover, the company has also kept rebar and H-beam prices stable flat 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 ($695/t)
  
  
• Rebar (D13~25): JPY 98,000/t ($637/t)
  
  
• H-beam (100-300mm): JPY 127,000/t ($825/t)
  
  

Factors affecting prices

Sluggish demand in Japan: Domestically, construction delays are impacting demand, but infrastructure projects offer hope. However, steel sheet demand is mixed, with the auto sector recovering slowly. Overall, demand is sluggish. Despite declining import prices, domestic producers remain cautious. It is expected that market conditions may improve as demand recovers and supply adjusts. Prices remain unchanged this month in view of the assessment of market response.

Kanto scrap export prices rise m-o-m: Around 15,000 tonnes (t) of H2 scrap was sold at Japan's Kanto export tender on 10 April at JPY 51,087/t ($335/t) FAS, marking a slight rise of JPY 987/t ($7/t) compared to the previous month. The FOB price is estimated to be around JPY 52,000-52,500/t ($341-344/t), equivalent to INR 28,713/t (FOB).

Key global mills lower steel prices: Baosteel, China's leading steelmaker, reduced HRC prices by RMB 100/t ($14/t) for May'24 sales. Moreover, Hoa Phat, has lowered its monthly HRC (SAE1006, non-skin passed) prices by $40-45/t for June-July'24 sales.

Outlook: Demand for steel products continues to be weak, with no immediate hope of recovery, according to METI. However, the auto industry has shown some signs of improvement. Moreover, construction activity is also likely to remain subdued, hampered by a lack of available workers and increasing material costs.