Tokyo Steel holds prices steady for August contracts

Japan's leading electric arc furnace steelmaker Tokyo Steel says it will keep domestic steel prices unchanged across all product categories for August contracts, marking the third consecutive month of price stability.

Base prices of its rebar, hot rolled coil, plate and H-shape steel are unchanged at JPY 85,000/tonne ($577/t), JPY 89,000/t, JPY 100,000/t and JPY 112,000/t, respectively, Kallanish notes.

The company cites sluggish demand and persistent downward pressure on the market, but expects tightening supply conditions due to seasonal production cuts to offer support moving forward.

At a press briefing, Yuji Komatsuzaki, executive officer and general manager of the Sales Division, said international trade volumes for steel-related goods remain subdued, and domestic spot demand has also failed to pick up. "Given the current supply-demand situation and market trends at home and abroad, we decided to maintain pricing in all categories to support a bottoming out of the domestic market," he noted.

While demand remains soft, Tokyo Steel sees the upcoming seasonal production slowdown by electric arc furnace producers from July to September

Source:Kallanish