Tokyo Steel increases prices for its products for the 3rd month in a row

Tokyo Steel Manufacturing Co Ltd, Japan's largest electric arc furnace steelmaker, will raise prices for its products for the third straight month, citing tighter international prices and domestic construction projects accompanying preparations for the 2020 Olympics.

Tokyo Steel, which makes beams and rebars used in the construction industry, says prices for products for February delivery will rise by about 2-4 percent, marking the first time in six years that it has increased prices for three consecutive months.

Managing director Kiyoshi Imamura said at a press conference that he does not rule out a rise in prices even later this year. Tokyo Steel's pricing strategy is closely tied to Asian competitors such as South Korea's Posco and Hyundai Steel Co, as well as China's Baoshan Iron & Steel Co (Baosteel).

"The steel market has been under pressure from massive Chinese production and exports in the past two years," Imamura said, "but the situation is different at the moment as Chinese demand has rebounded while its exports have declined."

Among the Olympic construction projects underway in Tokyo, Imamura highlighted the construction of the main stadium to host the Games and Olympic Village facilities for athletes, due to begin this month.

The final step will be to raise prices by 1,000-3,000 yen ($ 8.80-26.30) per tonne, Imamura said.