Tokyo Steel will raise product prices in June to 18%

Tokyo Steel Manufacturing Co Ltd said it would raise prices for all of its steel products by 9.5-17.6% in June, reflecting higher overseas prices and anticipated higher domestic demand.

The price hike in June by Japan's largest electric arc furnace steelmaker, which produces steel products primarily for use in construction, came after price increases for some products over the past two months.

Tokyo Steel's prices are closely watched by Asian competitors such as South Korea's Posco and Hyundai Steel, as well as China's Baoshan Iron & Steel Co Ltd (Baosteel).

Overseas steel prices rose amid limited supply and strong demand from China, with the top-selling construction rebar and wire rod contracts on the Shanghai Futures Exchange up nearly 40% this year.

At the same time, domestic prices are lagging behind overseas markets, but demand for construction steel is expected to rebound, and higher raw material prices are likely to force steelmakers to raise product prices, Tokyo Steel said in a statement.

Pickled and oiled coil prices will rise 17.6% in June to 120,000 yen ($ 1,097) per tonne, while prices for U-shaped steel sheet piles will be increased 9.5% to 115,000 yen per ton, Tokyo Steel reports.

Prices for its main H-beams will be raised 10.8% to 103,000 yen per tonne.