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

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

Effective prices-

• HRC (1.7-22mm): JPY 115,000/t ($857/t)
  
  
• Rebar (D13~25): JPY 103,000/t ($786/t), up by JPY 3,000/t ($23/t)
  
  
• H-beam (100-300mm): JPY 127,000/t ($970/t)
  
  

Factors behind rebar price hike

1. Kanto scrap export tender prices hit 11-month high: Japan's bellwether Kanto Tetsugen scrap export tender was concluded on 9 March. A total of 18,100 t of scrap was awarded, with the average price at around JPY 55,438/t ($423/t) FAS for H2 scrap. Bid prices increased by JPY 2,076/t ($16/t) m-o-m compared to bids in February.

The first bid was placed for 3,100 t at JPY 55,680/t ($425/t) FAS to Taiwan, while the second was for 15,000 t at JPY 55,388/t ($423/t) FAS to Bangladesh. As many as 15 companies participated in the tender, according to sources.

2. Global rebar price hike: Prices in global markets have increased. For instance, China's Shagang Steel has raised rebar and coiled rebar prices by RMB 50/t ($7/t), while prices for wire rods remained unchanged for mid-March sales. Effective prices are:

• Rebar (16-25 mm): RMB 4,450/t ($646/t)
  
  
• Wire rod (6-10 mm): RMB 4,560/t ($662/t)
  
  
• Coiled rebar (8-10 mm): RMB 4,700/t ($682/t).
  
  

3. Demand-supply disequilibrium: Japan's market is facing supply constraints. Inventories of steel sheets have been gradually decreasing after peaking in August last year. Moreover, cargo movements in the market remained stagnant in the construction sector.