Japanese steel giant Tokyo Steel Manufacturing Co. Ltd. announced its first price cut in more than four months. The company has decided to cut prices for I-beams and hot rolled coils, which have remained unchanged since October last year. The company named the weak steel market and the growing strength of the yen as the key reasons for its decision to cut prices.
According to Kiyoshi Imamura, managing director of Tokyo Steel, the price decline was mainly due to weak market conditions. The recent increase in the value of the Japanese currency has also led to price cuts. However, the company does not expect prices to decline further, Imamura added.
The rise in the Japanese yen's strength makes imports cheaper and exports more expensive. A stronger yen could boost the flow of cheap imports into the country. The strength of the national currency prevented domestic producers in the country from taking full advantage of the dollar-based price increase for foreign businesses, which caused pressure on domestic prices.
March contract prices for I-beams are down ¥ 3,000 /t to ¥ 67,000 /t, in the same way that hot rolled coil prices deviated ¥ 3,000 /t to ¥ 50,000 /t ($ 1 equals ¥ 112.57)
Tokyo Steel Announces First Steel Price Cut in Four Months
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Azovpromstal® 24 February 2016 г. 11:30 |
