Japan: Tokyo Steel Increase Re-bar Prices by Yen 1,000/MT

Tokyo steel-Japan’s topmost electric arc furnace steelmaker has raised re-bar prices on falling export volumes of China resulting in increased demand of steel products from Japan. Re-bar prices in Tokyo are now assessed in the range of Yen 57,000/MT (USD 510/MT) which is higher by 2% as compared to Yen 56,000/MT (USD 500/MT) in the end of last month. Notably, this is company’s first hike in rebar prices since late Mar’17.

Following the trend of other Japanese steelmakers like Kyoei Steel has also planned to raise re-bar prices by Yen 2000/MT in Aug’17.

Japanese steelmakers are taking the advantage by increasing the re-bar prices since the Chinese mills are focussing more on local market amid domestic gains. Chinese steel exports have witnessed decline of 28%, Y-o-Y to 41MnT in H1 CY17. Nation’s government has also closed the small scale steel firms who were producing steel from scarp metal causing pollution hazards in China resulting in fall in export volumes.

Japanese steel makers are also planning to hike in re-bar prices owing to higher raw material cost over hike in scrap and billet prices.

Electric arc furnace based steelmakers are eyeing for levels of Yen 60,000/MT but on the other hand many construction companies have put their procurement on hold due to uncertainties in scrap prices.