Tokyo Steel has reduced the selling price of hot rolled coil for September delivery by 8,000 yen (approximately $58.50) per ton. The price of galvanizing was reduced by the same amount. Prices for steel sheet, square steel pipes and deformed steel bars are reduced by 5,000 yen per ton, while prices for other products such as shaped steel and heavy plate remain unchanged for the time being.
However, the adjustment was softer than the downturn in the shipping market. Tokyo Steel realized prices reached their peak in May, which was announced in mid-April, and then remained unchanged for three months, when the world market saw a continuous drop in prices.
According to the Argus agency, in Southwest Asia, steel prices have fallen by $330 per ton, or 35.7%, since the beginning of April to $595 per ton on August 19. The cost of ex-factory hot-rolled flats in NW Europe fell 51.7% from the end of March to $748 as of August 19.
The global metallurgy complex has entered a phase of sharp price correction since April due to geopolitical and macroeconomic uncertainty. The recovery in steel demand in Asia was also affected by China's zero-spread coronavirus policy and extreme weather during the summer. According to Tokyo Steel, steel prices have fallen below profitable levels for many steelmakers and have yet to bottom out.
