The Japanese steelmaker Tokyo Steel is raising prices for its steel products for April sales due to rising raw material costs, according to BigMint.
Prices for hot-rolled coils (1.7–22 mm) are rising by 7,000 yen per ton ($44/t) compared to the previous month, and prices for rebar and sections are rising by 5,000 yen/t ($31/t) compared to the previous month.
Thus, following the revision, Tokyo Steel’s prices stand at $584/t for HRC (1.7–22 mm) and $546/t for rebar (D13–25).
Domestic demand in Japan remains cautious amid uncertainty regarding future construction activity in some regions, and delays in the transition to higher price levels are slowing market activity. However, steel producers are increasing their rolling supply schedules. At the same time, scattered inventories in the distribution sector have increased demand for shorter delivery times.
Capital investment projects are currently experiencing a temporary lull, but they are expected to contribute to the recovery of freight volumes and overall market activity in the near term.
Domestic demand for flat steel remains stable, supported by the machinery manufacturing sector, the industrial equipment sector, and investments related to digital transformation. Additional support is expected from investments related to semiconductors, as well as a gradual recovery in demand in the shipbuilding and automotive industries ahead of the new fiscal year.
Import trends will continue to depend on the balance of supply and demand in China, exchange rates, and energy prices.
The rise in steel prices in Japan is likely finally gaining momentum, notes Mysteel Global. Over the past few weeks, all three of the country’s integrated producers (Nippon Steel, JFE Steel, and Tokyo Steel) have announced significant price hikes for carbon steel coils and sheet products, citing higher production costs and rising international steel prices, despite the fact that domestic demand remains weak.
As a reminder, Baoshan Iron & Steel Co (Baosteel), a subsidiary of China Baowu Steel Group, is raising prices for major flat steel products, including hot-rolled coil (HRC), by 200 yuan per ton ($29/t) for domestic sales in April.
