Japan: Tokyo Steel rolls over steel prices for Jun'23 deliveries

Tokyo Steel, Japan's top electric arc furnace steelmaker, has rolled over its steel prices m-o-m for June 2023 sales, as per the latest price list unveiled today.

Effective prices-

• HRC (1.7-22mm): JPY 115,000/t ($833/t)
  
  
• Rebar (D13~25): JPY 103,000/t ($747/t)
  
  
• H-beam (100-300mm): JPY 127,000/t ($921/t)
  
  

Factors weighing on prices

• Global steel market sentiments subdued: Prices in the global market have declined significantly. For instance, China's Shagang Steel has reduced rebar prices by RMB 50/t ($7/t) to RMB 3,950/t ($563/t) for late-May sales. Prices are ex-mill, including VAT.
  
  

Baosteel, the world's top steel manufacturer, has lowered its monthly HRC prices by RMB 200/t ($29/t) m-o-m to for June sales due to subdued domestic demand and falling global HRC prices. The company has cut prices for the first time in five months.

Moreover, Formosa Ha Tinh (FHS), Vietnam's leading steel mill, has also announced a cut in its monthly HRC (SAE1006, skin pass) prices by $65/t for June deliveries. The company has lowered prices considering subdued domestic demand and declining HRC import offers.

• Kanto tender prices drop for second straight month: Japan's bellwether Kanto Tetsugen scrap export tender concluded on 10 May. A total of around 25,500 t of scrap was awarded, with the average price at around JPY 46,173/t ($335/t) FAS for H2 scrap. Bid prices fell significantly by JPY 4,383/t ($32/t) compared to bids of JPY 50,556/t ($367/t) in March.
  
  

Major buyers of Japanese scrap such as South Korea, Vietnam and Bangladesh may now resume bookings actively owing to workable price levels in the market. However, steel demand is still bearish in major markets, which is weighing down scrap prices.

Considering the current scenario, market participants expect a further price correction for Japanese scrap. In addition, buyers are looking for more discounts to stock up on inventory before the rainy season.