Tokyo Steel Manufacturing Co Ltd , Japan's top electric arc furnace steelmaker, said it would slash prices of its products for October delivery by up to 13 percent to reflect soft local demand and weakening overseas prices.

The company will cut prices by between 3,000 yen to 7,000 yen ($29 to $69) per tonne, it said in a press briefing on Tuesday. That is between 4 percent and 13 percent, Reuters calculations show.

This is Toyko Steel's first across-the-board cut in seven months and comes five months after the company's attempt to bolster product prices.

Tokyo Steel's pricing strategy is closely watched by Asian rivals such as Posco, Hyundai Steel Co and Baosteel, which export to Japan.

Prices for the company's main product, H-shaped beams, which are used in construction, will fall by 7,000 yen, or 10 percent, to 65,000 yen ($638) per tonne in October. Prices for steel bars, including rebar, will drop by 7,000 yen, or 13 percent, to 47,000 yen a tonne.

"The price cut is to reflect the current market condition and to send a signal to the market that the prices will be bottoming out next month," Tokyo Steel's Managing Director Kiyoshi Imamura told reporters.

"We had expected to see a pick-up in local demand this year, but the delay in construction projects for the 2020 Summer Olympic Games and redevelopment works in the Tokyo metropolitan area has slowed a demand recovery," Imamura said.

Export demand is also under pressure, he said, due to cheaper export prices from Chinese mills.

"Basically, oversupply from China has not changed." ($1 = 101.9300 yen)

 

Source : reuters.com

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Tokyo Steel Manufacturing Co Ltd , Japan’s top electric arc furnace steelmaker, said it would slash prices of its products for October delivery by up to 13 percent to reflect soft local demand and weakening overseas prices.

The company will cut prices by between 3,000 yen to 7,000 yen ($29 to $69) per tonne, it said in a press briefing on Tuesday. That is between 4 percent and 13 percent, Reuters calculations show.

This is Toyko Steel’s first across-the-board cut in seven months and comes five months after the company’s attempt to bolster product prices.

Tokyo Steel’s pricing strategy is closely watched by Asian rivals such as Posco, Hyundai Steel Co and Baosteel, which export to Japan.

Prices for the company’s main product, H-shaped beams, which are used in construction, will fall by 7,000 yen, or 10 percent, to 65,000 yen ($638) per tonne in October. Prices for steel bars, including rebar, will drop by 7,000 yen, or 13 percent, to 47,000 yen a tonne.

“The price cut is to reflect the current market condition and to send a signal to the market that the prices will be bottoming out next month,” Tokyo Steel’s Managing Director Kiyoshi Imamura told reporters.

“We had expected to see a pick-up in local demand this year, but the delay in construction projects for the 2020 Summer Olympic Games and redevelopment works in the Tokyo metropolitan area has slowed a demand recovery,” Imamura said.

Export demand is also under pressure, he said, due to cheaper export prices from Chinese mills.

“Basically, oversupply from China has not changed.”

Source : hellenicshippingnews.com

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