Japan's Tokyo Steel to raise Dec price upto 3% on firm demand & tighter supplies

Japan's top EAF-based steel manufacturer Tokyo Steel has planned to increase its prices for Rebar by around 3.3%, H-shaped beams by 2.5%, and U-shaped steel sheet by 2.2% for Dec deliveries.

Dec '20 prices are mentioned below-

• Rebar JPY 63,000/t ($603)
  
  
• H-shaped beams JPY 83,000/t ($794)
  
  
• U-shaped steel sheet JPY 95,000/t ($909)
  
  

The attributable factors for a rise in prices for Dec deliveries-

• Gradually improving overseas demand along with that in the domestic market.
  
  
• Increase in raw material costs. Tokyo Steel has raised its scrap purchase price for all of its five works by JPY 500/t ($5/t) today. The company would now pay JPY 30,000/t ($287/t) for both Tahara works. Notably, with the recent hike, prices at Tahara have hit 17-months high.
  
  
• Cuts in production by mills to keep the market sentiments buoyant.
  
  
• Automotive industry posting increased demand for HRC.
  
  
• Supply shortage of few finished steel products helped absorption of the hike for Oct '20.
  
  

Last month, Tokyo Steel had kept the prices for Nov delivery unchanged for products across all categories to help in the absorption of the previous month's price hike.

Outlook- The Japanese steel producers foresee tight supplies in the near term with increased demand from most of the overseas buyers, especially China. Also, the gradual revival of pent-up demand has resulted in improved operating rates in most of the overseas countries to match the domestic demand. These factors might keep global prices at an elevated range.