TOKYO: Tokyo Steel Manufacturing , Japan's top electric arc furnace steelmaker, will raise the price of its products for May delivery by up to 16 percent in its first across-the-board price hike in more than two years, reflecting a recovery in international markets.
Tokyo Steel's pricing strategy is closely watched by Asian rivals such as Posco, Hyundai Steel Co and Baosteel, which all export to Japan.
"We need to raise prices to reflect a stronger overseas steel market as well as higher steel scrap prices after China cut its steel exports," Tokyo Steel's Managing Director Kiyoshi Imamura told a news conference.
"We also see increased activities in construction projects in Japan," said Imamura.
Prices will rise by 5 percent to 16 percent in the first across-the-board hike since late 2013.
Shanghai rebar prices have risen about 50 percent since bottoming out in early December, encouraging Chinese mills to sell to domestic customers instead of exporting.
The price of Tokyo Steel's main product, H-shaped beams used construction, will rise by 5,000 yen to 72,000 yen a tonne, while prices for steel bars, including rebar, will rise by 7,000 yen to 51,000 yen ($472) a tonne, the company said.
Prices for most of its sheet products, including hot-rolled coils, will rise by 3,000 yen.
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