Tokyo Steel raises prices for the first time in 7 months

Tokyo Steel Manufacturing Co Ltd, a leading manufacturer in Japan, said it would raise steel product prices by 5.4 percent in September to reflect strong domestic and international demand as well as higher material costs. This was reported by the metallurgical portal STEELLAND .

The company will increase prices for 11 products by $ 18.30 - $ 27.5 per ton, which ranges from 2.3 to 5.4 percent. This is Tokyo Steel's first price hike in seven months. Tokyo Steel's pricing strategy is closely watched by Asian competitors such as South Korea's Posco and Hyundai Steel Co, as well as China's Baoshan Iron & Steel Co Ltd (Baosteel).

“Overseas markets have become strong thanks to strong local demand from China and the continued decline in exports from China,” Tokyo Steel's managing director Kiyoshi Imamura told reporters.

“The local Japanese market is also becoming tense due to falling steel inventories and healthy construction demand from a number of development projects in the metropolitan areas of Tokyo,” he said.

He added that Tokyo Steel also faced rising prices for scrap metal, electrode and firearms, as well as higher electricity prices.

Rebar prices will rise 5.4 percent to 59,000 yen ($ 540) per tonne, while prices for U-piles from sheet steel will increase by 2,000 yen, or 2.3 percent, to 90,000 yen per tonne.

Prices for the company's flagship product, H-beams used in construction, will remain unchanged at ¥ 78,000 a tonne, but this represents an actual increase of ¥ 3,000 from current market prices, which were below listing prices, Imamura said. Similar price increases will apply to three other products that are selling below market prices, he said.