Tokyo Steel, a leading EAF-based steel producer in Japan, has decided to maintain stable steel prices for September, marking the seventh consecutive month of price stability. Base prices will remain unchanged, with HRC at JPY 107,000 (USD 735) per ton, pickled and oiled coils at JPY 115,000 (USD 790) per ton, and coated coils at JPY 139,000 (USD 955) per ton. Prices for long steel products, including rebar at JPY 98,000 (USD 674) per ton and H-shaped beams at JPY 127,000 (USD 873) per ton, will also remain steady.
Tokyo Steel’s decision is influenced by ongoing global market uncertainty. The U.S., previously economically stable, now faces concerns over a potential manufacturing slowdown, raising fears of declining steel demand. Although U.S. steel indexes show signs of recovery, global trends, particularly in Europe, could lead to further price declines. In China, despite expectations for stimulus measures, concrete actions are lacking, resulting in a significant drop in both domestic and export steel prices. However, the rapid deterioration in steel manufacturers’ profits may prevent a prolonged price decline, Tokyo Steel said.
In Japan, Tokyo Steel said that construction demand remains sluggish due to extreme heat and workforce shortages, leading to delays and weak cargo movements for construction materials. Despite this, inquiries for H-beams have increased, driven by demand for large sizes and upcoming public works projects, which could improve market conditions later in the year. Steel plate demand remains stagnant, with low cargo movements expected during the summer holidays, creating a wait-and-see market attitude. Exchange rate fluctuations have heightened caution regarding imported steel, leading distributors to limit purchases and inventory. With domestic steel manufacturers also restraining supply, Tokyo Steel anticipates a market recovery as demand and supply realign.
Given these circumstances, Tokyo Steel has opted to keep prices unchanged across all product types while closely monitoring domestic and international market trends.
1 USD / 145.5 JPY
