Kyoei Steel lifts rebar prices for March

"The current demand trend (for rebars) is strong in both inquiries and cargo movements, (but it comes) against the backdrop of soaring construction costs and labor shortages," Kyoei said in a statement. "Although there are differences among regions, overall demand for large-scale properties will remain resilient in the future."

On the other hand, steel scrap prices are expected to be "on a strong trend" due to the depreciation of the yen and the expected strengthening of domestic demand for scrap as the peak construction season in spring approaches, the company observed.

Kyoei never reveals its list prices but in the Japanese market this week, deals involving SD295A 16-25mm rebars in Tokyo are being negotiated at Yen 115,000-Yen 117,000/t, unchanged since December, while those in Osaka, Kyoei's home market, are being discussed at Yen 104,000-Yen 105,000/t, sources say, some Yen 3,000/t higher.

Kyoei's decision to raise prices was in contrast to that of Tokyo Steel Manufacturing, the country's largest independent mini-mill, which said on Monday that it would roll over the list prices of all its steel items for March sales, as Mysteel Global reported. Admittedly, rebars represent perhaps less than 5% of Tokyo Steel's business while Kyoei relies almost totally on bars.

But on the other hand, Tokyo Steel might now be regretting not going with the flow and lifting any prices. Also on Tuesday, Japanese heavy sections maker Yamato Kogyo announced that it would be adding Yen 3,000/t to the prices of several sections items including its H-beams and I-beams for March, citing the scheduled rise in electricity rates and logistics costs from April. Yamato had earlier raised prices by Yen 2,000/t in January for current month sales.

Similarly, Nippon Steel Group mini-mill Osaka Steel has raised the contract prices of general shaped steels such as angles steel and channels by Yen 5,000/t this month while its parent Nippon Steel had lifted its H-beam prices for dealers also by Yen 5,000/t for February rolling, its first rise in ten months, as reported.

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

Edited by Alyssa Ren, rentingting@mysteel.com