|The TEX Report Topics < Scrap & Pig Iron >|
|HOME >> Topics List >> March, 2012 >> 21 (Wed)|
|Tokyo Steel's Y2,000 April Markup For Products Except Heavy Plates|
Japan's largest electric steelmaker Tokyo Steel Mfg Co announced March 19 that the company has decided to increase the list prices of all the steel products by Y2,000/ton each except heavy plates in its April supply contracts of domestic sales, with a March 22 deadline for order intakes. The decision marks a price increase for the first time in three months for long products and likewise in six months as to flat products. |
The company describes the decision as aimed at correcting price differences between domestic and imported steel products. The price differences have ensued from a considerable improvement of Japan's export environment for steel products in the wake of a depreciating yen against the US dollar.
As a result, the new list prices of main products in base sizes are Y73,000/ton FOT (free on truck) for H-beams; Y72,000/ton FOT for I-beams; Y70,000/ton FOT for channels; Y82,000/ton FOT for U-piles; Y55,000/ton CIF for deformed bars; Y60,000/ton FOT for HR coils; Y61,000/ton FOT pickled HR coils; Y78,000/ton FOT for hot-dip galvanized coils; and Y62,000/ton FOT for cut HR sheets. The list price of heavy plates remains unchanged at Y65,000/ton FOT for base sizes.
In supplies to end users, Tokyo Steel began to take orders from a March 19 afternoon at Y76,000/ton FOT for H-beams, at Y59,000/ton CIF for deformed bars, and at Y66,000/ton FOT for heavy plates.
Kiyoshi Imamura, Tokyo Steel's director and general manager of marketing, made his March 19 comments to the following effect.
<>With an excessive appreciation of the yen under correction in the foreign exchange markets, it has become possible to increase steel exports out of Japan. The nation's export environment has remarkably improved for all the domestic manufacturing industries including steel. Besides, it is likely that the operation rates of the domestic manufacturing industries will trend upward as a whole from fiscal 2012 (April 2012-March 2013), leading to an uptrend in domestic demand as well.
<>All things considered, Tokyo Steel has decided to execute a domestic price increase this time "for the initial execution" that would lead to more price increases in and after May. As to heavy plates, though, the company has opted to keep its list prices unchanged under a two-point judgment. In the first place, there is anxiety about the prospects of heavy plate demand for shipbuilding. In the next place, it would take time to improve the supply-demand situation for heavy plates in a glut.
<>Asia's major steelmakers in nations such as China, South Korea and Japan are taking concerted action to price up their products whereby Asian market prices are on the rise. As a result, the going prices are US$670-680/ton FOB for HR coils and US$780-790/ton FOB for H-beams. In Tokyo Steel's case, the company has negotiated a total of more than 100,000 tons so far in its export deals up to May shipment. Besides, the company has more export deals under negotiation for May-June shipment, in which the price level stands at US$670-680/ton FOB. Main destinations include countries in Asia and the Middle East.
<>Tokyo Steel has executed a price reduction twice so far for a short term in its purchases of locally available ferrous scrap at home. The current environment tends to facilitate exports of local ferrous scrap under the influence of the foreign exchange markets, in which the company is feeling some necessity to take care. But whether prices of local ferrous scrap rebound is a different story. They are unlikely to turn strong with an upsurge of domestic demand.
<>Tokyo Steel estimates finished steel production from its five works at a total of around 250,000 tons in March, of which HR coils would account for 120,000 tons (with 50,000 tons from the Tahara works), H-beams 70,000 tons, and heavy plates 30,000 tons.
February finished steel production from the five works totaled nearly 220,000 tons, of which HR coils accounted for 90,000 tons (with 30,000 tons from the Tahara works), H-beams 70,000 tons, and heavy plates 35,000 tons.
|last modified : Mon 26 Mar, 2012 [11:40]|