Tokyo Steel to increase steel prices by up to JPY 3000 a tonne

Saturday, 29 Jan 2011

Japan's largest electric steelmaker Tokyo Steel Mfg Co announced that the company has decided to increase the list prices of the whole steel products by JPY 2,000 to JPY 3,000 per tonne in its February 2011 supply contracts of domestic sales, with a January 26th 2011 deadline for order intakes. The decision indicates a price increase across the board for two consecutive months.
A price increase of JPY 2,000 per tonne applies to sheet products, heavy plates and square pipes. Another price increase of JPY 3,000 per tonne applies to long products.

As a result, the new list prices of main products in base sizes are1. JPY 69,000 per tonne FOT for HR coils2. JPY 87,000 per tonne FOT for hot dip galvanized coils3. JPY 73,000 per tonne FOT for checkered plates4. JPY 76,000 per tonne FOT for heavy plates5. JPY 78,000 per tonne FOT for H beams6. JPY 75,000 per tonne FOT for channels7. JPY 87,000 per tonne FOT for U piles8. JPY 61,000 per tonne CIF for deformed bars.

At the same time, Tokyo Steel announced a start up of heavy plate sales out of its captive warehouse in the Osaka area to meet the requirements of various customers. Heavy plates on sale are ones of 9mm to 40mm thick and 2,100mm/2,438mm wide on the SS400 standards.
Mr Naoto Ohori MD & GM of marketing at of Tokyo Steel said that "The price increases to take effect are intended to meet a surge in ferrous scrap prices. Prices of steel products are trending upward, but it will take time to correct cave in prices. The company is poised to watch prices of raw materials, supply demand conditions for steel products and foreign exchange markets after the lunar New Year holidays (February 2nd 2011 to February 8th 2011) in China."

He added that "The company estimates finished steel production from its five works at a total of around 150,000 tonnes for January 2011. On the agenda are periodic equipment repairs at the Okayama and Utsunomiya works for six days each from January 24th 2011 and at the Kyushu works for 13 days."(Sourced:TEX Report Limited)