Tokyo Steel holds all product prices for March

"It is expected that the manufacturing costs of steelmakers will remain at a high level due to the rise in raw material and energy prices, but in order to carefully assess the extent of the previous month's price increase and the supply-demand environment in Japan and overseas, we will leave all products unchanged this month," the company said in a statement.

Last month for current month sales, Tokyo Steel had raised domestic product prices for several flat-rolled coil items by Yen 2,000/tonne ($13.4/t), its first price adjustment in seven months, as Mysteel Global reported.

The price roll-over means that Tokyo Steel continues to sell its SS400, 9-40mm heavy plates for Yen 118,000/t, its 1.7-22mm SPHC-grade hot rolled coils for Yen 107,000/t and its 100x200mm H-beams for Yen 127,000/t, according to its price policy.

In the domestic market for long products, seasonal factors continue to impact sales of building materials and steel deliveries nationwide still lack urgency, it said. "But the inventory volumes held by distributors remain low and it is difficult (for steelmakers) to respond to inquiries for large sizes," the mill observed, adding that construction demand is expected to remain resilient for the immediate future.

Regarding flat products, Tokyo Steel noted market concerns about a stagnation in steel consumption due to the impact of production suspensions by the automobile-related industry, a reference to stoppages at Toyota Group carmaker Daihatsu.

"In other manufacturing industries, although the degree of recovery in demand has been both strong and weak, there has been no significant decline," it observed. "In addition, although steelmakers maintain their stance of restraining supply and are paying attention to trends in imported steel products, it is expected that the willingness of domestic buyers to purchase (imports) is low under the current exchange rate of the weak Japanese Yen."

Japanese industry watchers were mildly surprised that Tokyo Steel did not raise H-beam prices, given that rival Nippon Steel had lifted its H-beam prices for February roll by Yen 5,000/t, as reported. "But maybe Tokyo Steel was being cautious, because after announcing its coil-price increases last month, global flat prices softened and the company might have feared that getting customers to agree to higher sections prices this time might not be easy," one said.

Another pointed out that from the start of Japan's new fiscal year on April 1, costs for freight and other inputs are scheduled to rise and that maybe Tokyo Steel decided to keep prices unchanged for March and then lift them in April after the other cost rises kick in.   

Tokyo Steel's March 2024 finished steel list prices (incomplete)

Source: Tokyo Steel Manufacturing

Written by Russ McCulloch, russ.mcculloch@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com