TOKYO: Tokyo Steel Manufacturing Co Ltd said on Monday it will cut steel product prices by up to 6.5% in September from this month, reflecting weak local market conditions amid slackened demand from automakers.
Japan’s top electric-arc furnace steelmaker kept prices unchanged for all of its steel products, including its main H-shaped beams, for a third consecutive month in August.
For September, prices for hot rolled coils will drop by 8,000 yen ($58), or 6.5%, to 115,000 yen ($838) a tonne while prices for steel bars, including rebar, will decline by 5,000 yen, or 4.9%, to 97,000 yen a tonne. Prices of H-shaped beams will remain unchanged.
Steel prices soar on rising raw material cost
Overseas steel markets are going through an adjustment due to a slowdown in demand, mainly in Europe, while prices in China stay weak as restrictions to curb the COVID-19 pandemic, bad weather and disruptions in supply chains dent demand, Tokyo Steel said in a statement.
Domestic demand for construction materials remains firm but sheet products face lacklustre demand due to a delay in production recovery by automakers, it said.
Tokyo Steel’s pricing is closely watched by Asian rivals such as South Korea’s Posco and Hyundai Steel , and China’s Baoshan Iron & Steel Co Ltd (Baosteel) .
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