Japan's Kyoei Steel raises rebar prices for January

Kyoei Steel, Japan's largest rebar maker, is revising its domestic rebar prices for January sales, the company announced on Wednesday, after the Osaka plant added 5,000 yen per tonne ($38 per tonne) last month to sales for the current month. according to Mysteel Global.

In a statement, Kyoei said the December contract price increase has "completely penetrated the market" but warned that its costs are rising and that it is important to pass on the increase and bring market prices in line.

"Rise in prices for alloys, electrodes, auxiliary materials and fuel will be inevitable in the future," the statement said. “In particular, electricity tariffs continue to rise due to the adjustment in energy prices, and next year the increase will be even greater,” the report says.

Kyoei never discloses its exact list prices. But as of Wednesday morning, transactions for SD295A rebar 16-25 mm in Tokyo were at around 118,000-121,000 yen per ton, and in Osaka at 99,000-100,000 yen per ton, according to market sources. Prices in Tokyo have not changed over the past month, while prices in Osaka were 3,000 yen/tonne lower.

That Kyoei will keep its prices unchanged is probably not surprising given its larger competitor, Tokyo Steel Manufacturing, announced on Monday that it was reported to keep the prices of its entire product catalog, including fittings, unchanged in January. Tokyo Steel's list price for rebar in the base size (13-25mm) remains at 97,000 yen per ton.

Scrap metal prices are still the main concern of mini-mills. At a meeting of the Board of Directors of the National Association of Rolled Steel Manufacturers and Distributors last Thursday, Kyoei Steel chairman Hideichiro Takashima noted that ferrous scrap prices have risen in the first six months of this year, and the current market is on a downward trend compared to that period.

“However, the market price remains high as the demand structure has changed due to global decarbonization. We also need to take into account trends in manufacturing in developing countries and large developed countries, ”he was quoted by industry media as saying. “In these situations, the market price will continue to be high,” Takashima warned, adding that steelmakers need to pay attention to the rapid price fluctuations and quality of ferrous scrap.

The Board of Directors noted that in terms of supply and demand for rebar this month, “the situation was uncertain (in major rebar consuming regions across Japan) in the first half of December. Therefore, as far as offers are concerned, the buyers remained on the sidelines.”

However, after the Kanto Tetsugen Group's export auction of scrap metal on December 9 showed a significant jump in export prices for scrap, the ferrous scrap market showed signs of recovery, the leaders of the Association noted, adding that "we will closely monitor the offers for the purchase of small scrap. bars."

According to Mysteel Global, the winning price for H2 scrap offered by Tetsugen dealers was 47,710 yen per tonne FAS, about 3,000 yen per tonne higher than traders were paying pickers at Tokyo Bay ports at the time.