Tokyo Steel, a major EAF-based steel producer in Japan, has decided to maintain stable steel prices for July, marking the fifth consecutive month of price stability.
The company will hold prices steady, with HRC at JPY 107,000 (USD 678) per ton, pickled and oiled coils at JPY 113,000 (USD 716) per ton, and coated coils at JPY 139,000 (USD 881) per ton. Prices for long steel products such as rebar and H-shaped beams will also remain unchanged, at JPY 98,000 (USD 621) per ton and JPY 127,000 (USD 805) per ton, respectively.
Tokyo Steel explained its decision by noting weak effects from Chinese economic stimulus measures and lackluster domestic demand. The global steel market is facing stagnation due to overproduction and export pressures, though there are signs of gradual economic recovery and increased consumption in some regions. The company is cautious about protectionist trends in Europe and the United States and continues to monitor global economic trends and changes in steel supply and demand.
In Japan, concerns about delayed large-scale redevelopment projects and sluggish construction schedules are affecting demand. While small and medium-sized projects are taking time to materialize, there is an increase in new and re-quote projects driven by capital investment in public and private sectors, anticipating a future market recovery, Tokyo Steel said.
Despite stable demand in the manufacturing sector, the steel plate market remains uncertain due to weak construction demand and fluctuating automobile-related demand. Rising imports and cautious distributor purchasing are noted, but reduced domestic steel supply and summer production cuts might lead to decreased inventory and market improvement by autumn, the Japanese steel producer added.
Given these conditions, Tokyo Steel will maintain current product prices to monitor both domestic and international supply-demand environments and market trends, adjusting production in line with demand, the company said.
1 USD / 157.8 JPY
