Tokyo Steel Manufacturing Co Ltd said on Monday it is raising prices in June for all of its steel products by between 9.5% to 17.6%, reflecting surging overseas prices and an expected pick-up in local demand.
The June price increases by Japan’s top electric-arc furnace steelmaker, which makes steel products mainly for use in construction, come after it increased prices of some products in the past two months.
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) .
Overseas prices of steel products have rallied amid tight supply and robust demand from China, with the most-traded contracts for construction-grade steel rebar and wire rod on the Shanghai Futures Exchange having surged close to 40% this year.
Prices at home, meanwhile, have underperformed overseas markets, but demand for construction steel is expected to recover and higher prices of raw materials will likely force steelmakers to boost product prices, Tokyo Steel said in a statement.
For June, prices for pickled and oiled coils will be increased by 17.6% to 120,000 yen ($1,097) per tonne, while prices of U-shaped steel sheet piles will be raised by 9.5% to 115,000 yen a tonne, Tokyo Steel said.
Prices of its main H-shaped beams will be boosted by 10.8% to 103,000 yen a tonne.
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