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| Tokyo Steel Reports Y3,000-7,000 May Price Hikes For All Products |
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Japan's largest electric steelmaker Tokyo Steel Mfg Co announced April 19 that the company has decided to increase the list prices of all steel products by Y3,000-7,000/ton for the company's May supply contracts of domestic sales (with an April 21 deadline for order intakes), a price increase across the board for four consecutive months. With the price increases of the whole products, the company is contemplating meeting increased costs in its steel operations. In the background lies the world's active demand for steelmaking raw materials in a recovery of global steel demand. As to flat products, a price increase of Y4,000/ton applies to HR coils, hot-dip galvanized coils, pickled HR sheets, and heavy plates. As to long products, a price increase of Y5,000/ton applies to H-beams, U-piles and checkered H-beams; a second price increase of Y7,000/ton to I-beams and channels; and a third price increase of Y3,000/ton to wire rods and deformed bars. As a result, the new list prices of main products in base sizes are Y72,000/ton FOT (free on truck) for HR coils, Y92,000/ton FOT for hot-dip galvanized coils, Y76,000/ton FOT for checkered plates, Y76,000/ton FOT for heavy plates, Y79,000/ton FOT for H-beams, Y78,000/ton FOT for channels, Y88,000/ton FOT for U-piles, and Y64,000/ton CIF for deformed bars. Naoto Ohori, Tokyo Steel's managing director and general manager of marketing, made his comments April 19 to the following effect. <>Japan's domestic steel market conditions have begun to surge in prices in the wake of enhanced moves to correct "cave-in" prices and improve profit margins amid uncertain prospects of steel demand. On its part, Tokyo Steel is poised to struggle for a supply-demand adjustment of steel products while watching domestic and overseas trends of steel demand. <>Tokyo Steel intends to aim at increased prices of US$780/ton FOB for HR coils and US$830/ton FOB for H-beams in the steel exports the company negotiates for June shipments. The company firmed up its export deals last week of HR coils at US$750/ton FOB and H-beams at US$810/ton FOB for shipments to South Korea. <>Tokyo Steel is gearing up for export sales of automotive steel products into Asian destinations such as China, Thailand and India, where demand for those steel products is fast expanding. On the agenda are a sample shipment of 1,500 tons to China and an export shipment of 5,000 tons to Thailand, each in May. Both shipments are intended for local manufacturers of auto parts that have no affiliations with Japan's major automakers operating in China and Thailand. Also, Tokyo Steel has an inquiry from India for a purchase of automotive steel products. In this connection, the company is ready to take up exports to India if local requirements exist. |
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| last modified : Fri 23 Apr, 2010 [10:00] |
