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

• Domestic steel demand shows signs of recovery
  
  
• Bids inch down in Nov Kanto scrap export tender
  
  

Tokyo Steel, Japan's leading electric arc furnace (EAF) steel manufacturer, has rolled over prices of hot-rolled coils (HRCs) (1.7-22 mm) for December 2024 shipments compared to the previous month. Additionally, the company has kept prices of rebars and H-beams stable for the same period.

Post-revision, prices were as follows:

• HRCs (1.7-22 mm): JPY 92,000/tonne (t) ($595/t)
  
  
• Rebars (D13~25): JPY 88,000/t ($569/t)
  
  
• H-beams (100-300 mm): JPY 115,000/t ($744/t)
  
  

Factors affecting prices

1. Kanto scrap export tender sees drop in bids: The Kanto Iron and Steel Cooperative Association in Japan concluded its November scrap export tender with a slight drop in bids, both in JPY and dollar terms. Dollar-denominated bids declined by $3/t compared to October's tender, driven by a softening seaborne market. Approximately 15,000 tonnes (t) of scrap were likely booked by a Vietnam-based mill at JPY 45,180/t ($293/t) FAS, reflecting a drop of JPY 500/t ($3/t) from October's price of JPY 45,680/t ($296/t).

Moreover, in the final week of October, Tokyo Steel maintained stable scrap purchase prices during its latest revision. H2 prices were set at JPY 41,500/t ($270/t) at Tahara, Okayama, Utsunomiya, and Kyushu; JPY 40,500/t ($264/t) at Kansai; and JPY 40,000/t ($261/t) at Nagoya and Takamatsu.

2. Rebound expected in domestic steel demand: Japan's steel market, initially sluggish due to construction companies' order adjustments, is showing signs of recovery. Moreover, inventory shortages and rising inquiries indicate that the market is bottoming out. However, with cargo movements expected to increase and construction projects underway, a potential turnaround is on the cards for the steel industry.

3. Key global mills' steel prices show mixed trends: Baosteel, the world's top steelmaker, has kept HRC prices stable for Dec'24 sales, after increasing them by $71/t in Nov'24. Moreover, hot-dip galvanised prices also remained unchanged.

Formosa Ha Tinh (FHS), Vietnam's leading steel producer, has reduced its HRC prices by around $10/t CIF m-o-m, depending on the quantity booked, for late-December 2024 and early-January 2025 sales. Post-revision, prices of HRCs (SAE1006, skin-pass) stood at $534-548/t CIF Ho Chi Minh City.

Outlook

Tokyo Steel's stable pricing for December shows an intent to support market recovery. The company is also expected to adjust production to match demand.