Japan: Tokyo Steel raises rebar prices by $22/t for Mar'23 deliveries

Japan's top electric arc furnace steelmaker, Tokyo Steel, has decided to increase its rebar prices for March 2023 sales, as per the latest price list announced today. However, the company has kept prices unchanged for HRC and H-beam.

Effective prices-

• HRC (1.7-22mm): stable to JPY 115,000/t ($857/t)
  
  
• Rebar (D13~25): up by JPY 3,000/t (or $22 or 3%) to JPY 100,000/t ($746/t)
  
  
• H-beam (100-300mm): stable to JPY 124,000/t ($924/t)
  
  

Factors behind rebar price hike

1. Construction steel demand to improve: The company expects domestic steel demand in the construction sector to pick up as the manufacturing industry looks to invest in the local market while small- and medium-sized projects also show an upward trend.

2. Cost push as ferrous scrap prices rise: Tokyo Steel has resumed scrap purchases after nearly a month's gap post the Kanto tender. The company has increased buy prices by JPY 2,500/t ($19/t) for all plants, effective 10 February. After the final revision, prices for H2 scrap stand at JPY 53,500/t ($399/t) delivered to the Tahara, Utsunomiya, and Okayama plants.

Japan's bellwether Kanto Tetsugen scrap export tender concluded on 9 February. A total of 11,500 t of scrap was awarded, with the average price at around JPY 53,362/t ($407/t) FAS for H2 scrap. Bid prices increased by JPY 2,430/t ($18/t) m-o-m compared to bids presented in January.

3. Global steel price hike: Prices in overseas markets have increased. For instance, China's leading steel manufacturer, Baosteel, has raised HRC, CRC and HDG prices by RMB 200/t ($29/t) m-o-m and heavy plates prices by RMB 300/t ($43/t) for March sales. This is the third monthly price hike in a row by the company amid increasing raw material costs and anticipation of demand recovery.