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| Tokyo Steel Reports Uniform Y5,000 Cut In December Steel Prices |
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Japan's largest electric steelmaker Tokyo Steel Mfg Co announced Nov 17 that the company has decided to reduce the whole list prices of steel products by a uniform Y5,000/ton in its domestic supply contracts for December 2008. With the price reduction, the company is contemplating stimulating domestic demand for steel products and meeting competition from steel imports into Japan. As a result, the new list prices of main products in base sizes are Y78,000/ton FOT (free on truck) for H-beams; Y79,000/ton FOT for I-beams; Y87,000/ton FOT for U-piles; Y52,000/ton CIF for deformed bars; Y67,000/ton FOT for HR coils; Y70,000/ton FOT for pickled HR coils; Y75,000/ton FOT for checkered plates; Y86,000/ton FOT for heavy plates. Besides, the company intends to resume sales of heavy plates for the SM490A and SN490B grades. The sales of the two grades have been suspended since September last year because of requirements as building materials in the company's new works under construction in Tahara city, Aichi prefecture. Naoto Ohori, Tokyo Steel's managing director and general manager of marketing, made his comments Nov 17 to the following effect. <>The company is determined to take "defensive" measures against inflows of low-priced steel products into Japan from abroad amid a steep fall in domestic demand for steel products. <>With a fast downturn of steel demand both at home and abroad, the company is poised to respond with a further cutback in its steel production as an adjustment of the supply-demand status. In prospect is an enlarged cutback of 20-30% in the company's steel production for the January-March quarter of 2009, compared with the present cutback of 15% or so. <>Japan's domestic transaction prices of steel products could hit bottom over time, given the current situation for raw materials. In this connection, the nation's domestic market prices of locally available ferrous scrap have turned upward until now. |
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| last modified : Fri 21 Nov, 2008 [11:16] |
