News Room - Steel Industry

Posted on 17 Nov 2009

Tokyo Steel to Raise Prices for December Contracts

Tokyo Steel Manufacturing Co., Japan's largest maker of construction girders, will increase prices of some products by as much as 4.2 percent because of rising raw material costs.

The Tokyo-based company will raise the price of construction products including deformed steel bar, wire rod, and I-beam by 2,000 yen ($22.3) a metric ton for contracts starting next month, it said today.

Rising steel production in China, the world's largest maker, will likely spur higher costs for materials including iron ore and steel scrap, pressuring earnings for the industry, Managing Director Naoto Ohori told reporters in Tokyo. Iron ore prices may rise 20 percent next year, Samsung Securities said yesterday.

"Raw material costs are likely to go up," Ohori said. "Cost increases would be unavoidable for steelmakers."

Tokyo Steel fell 2.4 percent to 1,063 yen as of 1:15 p.m. local time on the Tokyo Stock Exchange.

The company will sell deformed steel bars at 50,000 yen for December. Prices of wire rods will increase to 61,000 yen next month from 59,000 yen, and I-beam will be raised to 64,000 yen from 62,000 yen, the company said.

Prices for H-beam and hot-rolled coil will be unchanged at 65,000 yen and 57,000 yen a ton respectively, it said. The mill will cut steel plate price by 2,000 yen a ton to 63,000 yen.

Tokyo Steel had reduced prices for the first time in seven months in November because of lower demand.