Although "priority measures such as prevention of spread" of COVID-19 are being applied to three prefectures, Tokyo Steel’s press conference on April 19, 2021 was also held face-to-face at the head office in Tokyo. (Logo quoted from Yahoo's image)
The selling price of steel materials contracted in May is 10,000 yen/t per month for hot-rolled coils, checkered coils, hot-rolled steel sheets, checkered steel sheets, and squared and rectangular steel tubes, and 10,000 yen/t for pickled and oiled coils, hot-dip galvanized coils, and pickled and oiled sheets. The company announced that it will raise the price of 13,000 yen/t and 5,000 yen for heavy steel plates. Other building material varieties continued to be deferred.
The global market price of steel sheet varieties has reached the level of over 100,000 yen/t (O/T NET), the coils for export have become tight, and the price difference between domestic and foreign markets has widened further as a market price. It became a factor. Tokyo Steel showed that it would be necessary to consider "raising the price of building material varieties" from the next month onward.
Tokyo Steel raised the prices of coils such as hot-rolled coils and steel sheets by 5,000 yen and 3,000 yen, respectively, in the previous month, but this month also decided to raise the prices further and offered a selling price of 100,000 yen.
The new selling price (base) of the hot-rolled coil was 94,000 yen per ton, exceeding 90,000 yen for the first time in 12 years and 7 months since the contract in October 2008 (98,000 yen per tons).
In addition, the hot coil price was 94,000 yen per ton, which exceeded the selling price of H-beams at 93,000 yen. This is the first time in about 16 years since the hot coil exceeded 70,000 yen for H-beam contracted from March to May 2005, which was 72,000 yen, which was 2,000 yen higher than the situation where thin sheets for automobiles were tight.
The market comment of Tokyo Steel is as follows;
“At the Overseas market, steel demand in each country remains strong, and manufacturers prioritize domestic supply, resulting in a marked decline in exports. As a result, the supply and demand of steel in the international market continues to be tight. In particular, the steel sheet market is showing a strong trend not only in Western countries but also in Asia. In addition to strong domestic demand in China, production adjustments are being made due to environmental regulations, which is another step. As the supply and demand of steel is expected to tighten and steel production continues to increase worldwide, the price of steel raw materials will continue to remain high, and the steel product market will continue to rise while keeping up trends. It is expected to run up to the next stage”.
“In the domestic market, there has been no major change in cargo movements in the market even after the start of the new fiscal year for building material varieties, and the market price pass-through to the price increases of steel makers has not fully penetrated, so slow market development is occurring. it is continuing. However, the market inventory is still maintaining an appropriate level, the demand for steel frames in the last two months has turned positive year-on-year, and the steel materials for foundation work with a near-term delivery date, which will be used from the opening of Golden Week (Holiday seasons in Japan from late April to early May), Specific inquiries for building properties are steadily increasing. Furthermore, as the number of small and medium-sized building properties that lead to cargo movements from the market is on the rise, we expect that the market conditions will improve with the movement of material arrangements in near future”.
“In addition, with regard to steel sheet varieties, the inventory level remains extremely low, and some varieties are in an extreme shortage, resulting in a very tight supply and demand situation. Although major price increases and revisions have been implemented by domestic and overseas steel makers, the supply volume of each manufacturer is extremely small, and prices are rapidly penetrating the market. However, the difference between domestic and overseas prices has widened further, and the sense of cheapness in the domestic market is very noticeable”.
“Under the above circumstances, the selling price of this month is taking into consideration the degree of penetration of the price increase so far into the market, the price difference in Japan and overseas, and the supply and demand environment for each product type. Hot-rolled coils, checkered coils, hot-rolled steel sheets, checkered steel sheets and square and rectangular tubes will be increased by 10,000 yen each, pickled and oiled coils, hot-dip galvanized coils and pickled and oiled sheets will be increased by 13,000 yen each, and heavy steel plates will be increased by 5,000 yen. Other varieties will remain unchanged. We will continue to take into consideration the supply and demand situation of the market and thoroughly implement production that meets the demand. "
（IRUNIVERSE tetsukoFY）
