Japan's steel manufacturing firm Tokyo Steel today announced the first price cut of the year for domestic steel sales, driven by prolonged weak steel demand in the global market.
Tokyo Steel will cut the September steel sales price by ¥8,000/t ($58.50/t) for hot-rolled coil (HRC), checkered coil, pickled coil and galvanised coil. The prices for steel sheet, square steel pipe and deformed steel bar will be reduced by ¥5,000/t, while prices for other products like shaped steel and heavy plate will remain unchanged.
The adjustment was milder than the decline in the seaborne market. Tokyo Steel's sales prices hit their peak in May, which was announced in mid-April, and then stayed unchanged for three months when the global steel market experienced continuous price falls. The Argus HRC Asean cfr Vietnam price plunged by $330/t, or 35.7pc from early April to $595/t on 19 August. The Argus HRC ex-works Northwest Europe assessment plummeted by 51.7pc from end March to $748.27/t on 19 August.
The global ferrous complex entered a sharp price correction phase since April because of geopolitical and macroeconomic uncertainties. Steel demand recovery in Asia was also dented by the zero-Covid policy in China and extreme weather conditions during summer. Steel prices fell below profitable levels for many steelmakers and have yet to hit the bottom, according to Tokyo Steel.
