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| Tokyo Steel Reports Y5,000-8,000 April Price Hikes For All Products |
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Japan's largest electric steelmaker Tokyo Steel Mfg Co announced March 23 that the company has decided to increase the list prices of all steel products by Y5,000-8,000/ton for the company's April supply contracts of domestic sales, a price increase across the board for three consecutive months. With the price increases of the whole products, the company intends to meet increased costs in its operations amid ferrous scrap prices on the upside. As to long products, a price increase of Y5,000/ton applies to H-beams, I-beams, channels, U-piles, checkered H-beams, wire rods, and deformed bars. As to flat products, a price increase of Y5,000/ton applies to HR coils, hot-dip galvanized coils, checkered coils, HR sheets, checkered plates, and heavy plates; a second price increase of Y7,000/ton applies to pickled HR coils; and a third price increase of Y8,000/ton applies to pickled HR sheets. As a result, the new list prices of main products in base sizes are Y74,000/ton FOT (free on truck) for H-beams, Y71,000/ton FOT for channels, Y83,000/ton FOT for U-piles, Y61,000/ton CIF for deformed bars, Y68,000/ton FOT for HR coils, Y88,000/ton FOT for hot-dip galvanized coils, Y72,000/ton FOT for checkered plates, Y72,000/ton FOT for heavy plates, and Y75,000/ton FOT for pickled HR sheets. Naoto Ohori, Tokyo Steel's managing director and general manager of marketing, made his comments March 23 to the following effect. <>In China, prices of resources are trending upward in active demand on the basis of expectations for the world's economic recovery after the lunar New Year holidays in East Asia. <>In Japan, there are prospects that domestic steel market conditions will move up in prices, with rising costs in resource inflation as the driving force like what happened in 2008. <>Tokyo Steel is contemplating seeking increased prices in the steel exports the company negotiates anew. Target price levels are US$730/ton FOB for HR coils and US$780/ton FOB for H-beams. <>Tokyo Steel expects a cutback of around 50% to continue in its crude steel production, compared with a peak of production. The company sees prospects that its HR coil production will continue at a level of 70,000-80,000 tpm, while its H-beam production will go up to a level of 50,000 tpm from April onward from March production of less than 40,000 tpm. <>As to supplies of locally available ferrous scrap, Tokyo Steel faces less than favorable arrivals at its works. There are signs that ferrous scrap dealers stay bullish, waiting for No2 HMS prices to hit Y40,000/ton ex steelworks. |
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| last modified : Mon 29 Mar, 2010 [10:43] |
