Japan: Tokyo Steel Reduce Steel Prices by JPY 2000-3000/MT (USD 18- 28) for Oct Deliveries

Tokyo Steel Manufacturing Co. Ltd- Japan's leading electric-arc furnace cuts finished steel prices by around JPY 2,000-3,000/MT ( USD 18-28) for October deliveries today owing to competitive offers from other major steel producing nations.

Slump in trade activities from overseas buyers owing to prolonged US-China trade dispute and weakening sentiments in the domestic market resulted to decline in the company's finished steel prices for Oct deliveries.

The company has declined its steel prices after three consecutive months for Oct deliveries. Previous cut was made in the month of Jun'19 by around JPY 3,000-5,000/MT for Jul'19 deliveries.

After reduction company's effective prices of H shaped steel is hovering at JPY 83,000/MT and JPY 62,000/MT for deformed steel bars (rebars). Meanwhile, hot coil price is at JPY 67,000/MT and plates is around JPY 77,000/MT for October deliveries.

Meanwhile the company also significantly dropped export offers by USD 40/MT against the previous month. Thus, current export offers of HRC coils are hovering at USD 490-510/MT FoB basis and H- shaped steel is around USD 610-630/MT FoB basis.

Meanwhile, total production in the month of Sep'19 was around 2,15,000 tonnes. Out of which H- shaped steel is around 90,000 tonnes, hot rolled coils is 90,000 tonnes and exports is around 20,000 tonnes and planks is around 15,000 tonnes.

Kiyoshi Imamura, Tokyo Steel's Managing director on global market conditions commented that "The sudden fall in overseas market conditions has caused a number of low-priced offers, which has a considerable impact on the country. In Japan, the current cargo movement has not been as active as expected, but the domestic market has not fallen as much as overseas".

Further, he added that uncertainty continues to prevail in the overseas market due to US-China trade fiction. Also increased supply and low demand led to a decline in steel prices.

Tokyo steel lowered scrap purchase price- As per new price circular released on 13th Sep'19, Japan's leading EAF mini-mill -Tokyo Steel has lowered its scrap purchase price at 2 of its plants, Utsunomiya works in Kanto region and Okayama plant, by JPY 500/MT (USD 5), while keeping the prices at its other 3 plants unchanged. Notably, this is the 3rd price cut by the company in the last 4 days, as the Japanese scrap prices have been in a free-fall mode in Sep'19.

~Inputs from Japan Metal Daily.