Japan: Tokyo Steel rolls over steel prices m-o-m for Aug'24 sales

Tokyo Steel, Japan's major electric arc furnace steel manufacturer, has continued to keep HRC (1.7-22 mm) prices unchanged m-o-m for August 2024 shipments. In addition, the company has also kept prices stable for rebar and H-beam for the same time period.

• HRC (1.7-22mm): JPY 107,000/t ($675/t)
  
  
• Rebar (D13~25): JPY 98,000/t ($618/t)
  
  
• H-beam (100-300mm): JPY 127,000/t ($801/t)
  
  

Factors affecting prices:

1. Kanto scrap export tender bids down for Jul'24: Kanto scrap export tender bids for July, 2024 went down by $5/t m-o-m on JPY depreciation.

In the latest Kanto tender, a major Vietnamese steel company secured around 14,000 t of H2 scraps at JPY 52,168/t ($329/t), representing an increase of approximately JPY 804/t ($5/t) compared to JPY 51,364/t ($324/t) in June's Kanto tender. However, in dollar terms, there was a decrease of about $5/t due to the JPY's depreciation against the US dollar.

On the other hand, Tokyo Steel has announced a JPY 500/t ($3/t) drop in its scrap procurement prices across all its plants, effective from 13 July. The current price for H2 scrap stands at JPY 51,500/t ($324/t) at its Tahara plant and JPY 52,000/t ($328/t) at its Utsunomiya plant.

2. Sluggish demand in Japan: Domestic construction faces challenges due to labour and equipment shortages, impacting small and medium-sized projects. While public infrastructure is stable, overall demand is weak, causing delays in order fulfillment and material movement. However, the situation is expected to improve with increased steel demand.

3. Key global mills' steel price trend: Taiwan's China Steel Corporation (CSC) has rolled over steel prices m-o-m for August, 2024 sales. Prices of HRC, HR plate, CRC and hot-dipped galvanised steel coil remained stable.

Moreover, Vietnamese steel major, Formosa Ha Tinh (FHS), has rolled over HRC prices m-o-m for September 2024 shipments. Subsequent to the revision, prices of HRC (SAE1006, skin pass) stand at $570-580/t CIF Ho Chi Minh City (HCMC).

However, World's top steel manufacturer, Baosteel, has reduced HRC prices by RMB 100/t ($14/t) m-o-m for August, 2024 sales, after keeping prices unchanged in July.

Outlook:

Tokyo Steel maintains a cautious stance, holding prices steady to closely monitor domestic and global market conditions. The company will adjust production in line with demand to balance supply and consumption.