the Largest electrometallurgical company in Japan, Tokyo Steel Manufacturing Co Ltd said on Monday that it will cut prices on all steel products in April by about 6-11% amid growing concerns about pandemic coronavirus. The price drop will be the first for 6 months and will amount 5,000 yen ($47) up to 9,000 yen (84 U.S. dollars).
"Uncertainty extends to the steel industry, as after the outbreak of coronavirus, economic activity slowed down," - said at a briefing, managing Director of Tokyo Steel's Kiyoshi Imamura. "We decided to reduce prices to match the current weak market conditions, although the actual demand has not fallen as much as feared the people."
Domestic stocks of steel sheets remain high, while weakened by the pandemic foreign markets and the recent rise in the yen against the U.S. dollar also create the risk of increased cheap imports from neighbouring countries, such as China, South Korea and Taiwan, he added.
To the question about the consequences of possible decisions to cancel or postpone Olympic games in Tokyo in 2020, Imamura said that he is concerned about potential losses in the service sector and tourism, which may weaken the Japanese economy.
"I have not heard of any cancellations in construction projects due to the outbreak of the virus ... but some companies may reconsider their plans to build new hotels or commercial properties, if this uncertainty will continue," he said.
In the last few years, the demand for Japanese steel was supported by a number of construction projects for the Olympic games, redevelopment projects in the Metropolitan area of Tokyo and plans construction of new hotels across the country to meet the growing number of foreign tourists.
For the prices, Tokyo Steel is closely monitored Asian competitors such as South Korean Posco and Hyundai Steel, as well as China's Baoshan Iron & Steel Co Ltd (Baosteel).
