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Kyoei Steel, Japan's largest rebar producer, announced on January 14th that it will maintain its rebar pricing policy at its four nationwide plants this month, but effective immediately, the price will be 100,000 yen per ton (approximately US$633 per ton).
In its pricing policy statement, Kyoei Steel noted that against the backdrop of persistently weak domestic steel demand in Japan, the profit environment for steel mills has significantly deteriorated due to factors such as rising electricity and labor costs. At the same time, production cuts made to meet demand have pushed up unit fixed costs. The company stated, "At current market prices, it is difficult to ensure sufficient profits; therefore, the company has set the rebar price at 100,000 yen per ton."
Tokyo market insiders believe this statement is more of a declaration of price stance than a clear guidance price for transactions. B50A1000 Non oriented electrical steel, One observer noted that Kyoei Steel typically only announces the "direction of increase or decrease" in its monthly pricing policy, without providing specific prices. The explicit mention of 100,000 yen/ton this time is intended to demonstrate its firm commitment to pushing for future price increases. Furthermore, the statement did not specify the applicable rebar diameter specifications or whether it includes a price surcharge for specific specifications.
Industry insiders generally believe that Kyoei Steel's primary target this time is construction steel distributors and construction companies in the Osaka area. B50A1000 Non oriented electrical steel, According to data from the Japanese industry media outlet Tekko Shimbun, the current price of 16-25mm SD295 rebar in the Tokyo market is approximately 104,000-106,000 yen/ton, while in Osaka, due to fewer new projects and weaker demand, prices are significantly lower, at only 92,000-93,000 yen/ton.
However, market analysts point out that scrap steel prices in Tokyo and Osaka are roughly equivalent. With the new Japanese fiscal year (April) approaching, costs for labor, energy, and transportation are expected to rise further, requiring short-process steel mills, primarily using electric arc furnaces, to offset cost pressures by raising finished steel prices.
Mysteel Global believes that Kyoei Steel's decision to speak out at this time may be an attempt to preemptively release price signals to the market before Tokyo Steel, a price bellwether. B50A1000 Non oriented electrical steel, Tokyo Steel is expected to announce its February sales list prices on January 19.
