Tokyo Steel lifts carbon steel sheet prices by upto $46/t for Apr '21 delivery

Tokyo Steel Manufacturing Company Limited, Japan's leading electric-arc furnace producer, has announced an increase in prices of all its finished carbon steel coils and sheet products by JPY 5,000/t ($46/t) for April 2021 sales.

Prices are mentioned below-

• Hot rolled coil prices after revision stands at JPY 84,000/t (up JPY 5,000/t)
  
  
• Hot-dipped galvanized coil prices are at JPY 108,000/t (up JPY 5,000/t)
  
  
• Prices for chequered plates and pickled steel were increased by JPY 3,000/t
  
  

Export prices for HRC coils stood at $800-820/t FoB and H Beam at $710-730/t FoB prices are increasing as per the changing international market situation.

"After the Lunar New Year in China, the market in Asia hit the bottom and then rebounded. Since March market has been clearly on an upward trend. The market prices in Western countries, which were higher than the Asian market, are further increasing as well", Tokyo Steel stated.

SteelMint analyses following factors behind the price hike-

1.Global HRC prices on a rise-The prices for HRC in the global market have soared up by around $100/t from China since the beginning of Feb '21. The price assessed by SteelMint for Chinese HRC (SS400) stands around $740-750/t FoB China as on 16th Mar '21, contrasted against $640-650/t FoB basis in the first week of Feb '21. Export rebate cut from 13% to 9% or an axing of the same by the Chinese Government and increasing marine-freight costs remain the major concerns behind the surge in prices by Chinese mills.

2.Disruption in supplies-With the easing concerns over COVID pandemic and availability of vaccines in countries across the globe, the demand for steel products is on a rise. On the other hand, supplies of steel have been disrupted due to various factors like, slow ramp-up in capacity utilization, higher cost of production and logistics issues. These factors shall most likely continue to have an impact on the market and the international market is expected to continue increasing.

3.Increased demand in domestic market-With the commencement of FY '22 procurement of steel by distribution facilities, commercial stores and redevelopment projects are showing progress. Meanwhile, redevelopment projects and capital investments are increasing. Thus, improved domestic demand may lead to higher prices in Japan.

Outlook-

Tightness in supply and improved domestic demand will continue to support higher prices in domestic market. Also, bullish market trends in global market may increase prices in near term.