Japan's Tokyo Steel Increases Plate Prices Amid Tight Supply

Japanese based major steelmaker Tokyo Steel likely to increase plate prices for the first time in 11 months amid tight supply and strong demand

Tokyo Steel Manufacturing Co Ltd - Japan’s top electric-arc furnace steelmaker is planning to increase heavy plate prices by Yen 2000/MT for December deliveries in the backdrop of tight supply and increased demand in construction sector.This will be company’s first hike for heavy plates in 11 months of CY18.

However,company has kept prices for other products steady for the month of December.

Meanwhile HRC export prices have come down to USD 560-580/MT FoB against USD 600-620/MT a month back. And export offers for H shaped steel is at USD 660-670/MT FoB basis.

Out of total production, H- shaped steel was 105,000 tons and hot rolled coils was 10 MnT and plates of 15,000 tons with export quantity around 4 MnT.

Regarding domestic market conditions, Imamura Managing Director highlighted in the annual press conference,”Domestic demand for heavy plates has been very strong in construction sector and we expect this situation to continue.Also, imported products will not be easily replace local supplies due to strict requirements including quality from customers in Japan”.

Further he added that,strong market sentiments in Japan will continue to prevail.However periodic maintenance in winter season by domestic manufacturers may lead to tight supply and increased demand.Meanwhile China USA trade war results to lower offers of Hot rolled coils and slabs from China,Russia and Turkey which is major concern in Asian market.

Tokyo steel schedule plant maintenance-Tokyo Steel has planned maintenance shut down which is as follows :

1.Okayama on Jan 7 - Jan 10

2.Kyushu on Jan 28 - Feb 1

3.Tahara factory - Feb 18 to Feb 22

4.Utsunomiya factory- On Jan 4 to Jan 6 days

5.Utsunomiya second time- On Jan 28 to Feb 6 days.

Tokyo Steel slash scrap purchase price- Tokyo Steel slashed its scrap purchase prices fifth time in November.The steel manufacturer has reduced scrap prices by JPY 500/MT at Utsunomiya, Tahara and Okayama plants and by JPY 1000/MT at Kyushu works and Takamatsu Steel center respectively.

Notably, prices at its Kanto region based Utsunomiya plant have hit last 6 months low as earlier to this, prices dropped to JPY 34,000/MT levels for H2 during mid of May’18, and scrap prices at Tahara plant hit last one year low with recent price cut.