First time price cut in steel of Tokyo in Six Months
By Benny
Posted on : 6/14/2010
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Tokyo Steel demonstrate H-beams, used in construction, were lowered by 8.9 percent, or 7,000 yen, to 72,000 yen ($784) a metric ton
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Japan’s largest electric-furnace mill- Tokyo Steel Manufacturing Co., cuts prices as much as 10 percent for the first time in six months for July contracts, as price competition with Asian mills intensified and costs fell.
As per the companies briefing in Tokyo today demonstrate H-beams, used in construction, were lowered by 8.9 percent, or 7,000 yen, to 72,000 yen ($784) a metric ton also Hot coils were reduced by 9.7 percent to 65,000 yen a ton.
According to the Tokyo Steel Managing Director Naoto Ohori, The redaction in prices is due to unhurried demand in China, Largest steel consumer in the world. This has impacted on the global market as well. The cost of scrap metal Tokyo Steel uses at its Okayama plant has also declined about 23 percent from an 18- month high on March 30.
“The company needs to start afresh under such situations,” Ohori said.
Tokyo Steel shares rose 0.4 percent to 970 yen as of 1:04 p.m. on the Tokyo Stock Exchange.
Tokyo Steel cuts the Steel products for the July contracts by between 7,000 yen a ton and 9,000 yen a ton. The Company said: Plates were reduced by 9.2 percent to 69,000 yen a ton, while pickling coils were reduced by 12 percent to 68,000 yen.
Falling Prices
China’s Benchmark steel prices have fallen 10 percent from an 18-month high on April 15, as the government imposed measures to curb speculation in the property market. Baoshan Iron & Steel Co., China’s biggest publicly traded steelmaker, cut prices for July delivery for the first time in eight months amid concerns credit curbs may trim demand from automakers and builders.
Korean-made steel imports increased into Japan due to a weaker Korean currency. The won has slumped 7.6 percent this quarter against the dollar, the worst performing currency in Asia, according to data compiled by Bloomberg.
Tokyo Steel is cutting prices as rival including Nippon Steel Corp. and JFE Holdings Inc. are looking to raise prices because of higher raw material costs for iron ore and coking coal. Nippon Steel and JFE make steel using blast furnaces.
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About the author:
For the past three years I have been working for RecycleinME
.To help our valued members of RecycleinME, I involved in researching the current
market trend of various scrap materials.
Regards
Benny
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