Japan’s leading electric arc furnace (EAF) steelmaker Tokyo Steel will keep prices for all steel products unchanged for September sales, citing improving domestic market conditions but continued pressure from manufacturing costs.
The producer said construction demand is expected to gain momentum towards autumn as large projects begin moving forward, while market conditions have been steadily improving. It also expects demand for low-carbon-footprint steel to recover as preparations for new regulations increase across various sectors.
Tokyo Steel said manufacturing costs are expected to remain on an upward trend, despite a recent adjustment in scrap prices following temporary currency appreciation. The company also noted a widening price gap between Asian markets and the US and Europe, where EAF-produced steel is increasingly valued.
The producer will not offer hot-dip galvanized coil while equipment work is underway ahead of the launch of its cold-rolled coil production. Sales are expected to resume after the new year. Tokyo Steel said anti-dumping duties on imported material are expected to support a shift towards domestic products.
The premium for green steel products will also remain unchanged at JPY 5,900 (USD 37) per ton, the company said.
Tokyo Steel is Japan’s largest EAF steel producer, manufacturing a wide range of flat and long steel products from recycled scrap. The company operates four steel plants in Japan with annual crude steel production capacity of around 6 mln tons.
1 USD / 158 JPY