Tokyo Steel, Japan's leading steel manufacturer, has announced a reduction in domestic steel product prices for October, marking its first comprehensive price cut in over four years. This decision is a response to sluggish domestic demand and heightened competition from lower-priced imported steel.
Starting in October, prices will decrease across all product lines: steel coils and plates will drop by ¥15,000 per tonne, shaped beams by ¥12,000 per tonne, and tubes and deformed bars by ¥10,000 per tonne. Previously, the company had maintained stable pricing due to relatively steady domestic demand compared to the more volatile international market.
The third quarter saw weak steel sales in Japan, influenced by rising material procurement costs, a shortage of construction capacity, and an influx of cheaper steel from China. Additionally, domestic scrap prices at Tokyo Steel's Utsunomiya plant fell by ¥12,500 per tonne during the period. Market sentiment remains bearish amid economic uncertainty and potential fluctuations in exchange rates due to upcoming adjustments in U.S. monetary policy.
