Updates From Leading Steel Manufacturers – 23/02/2024

JFE Raises Both Domestic, Export Prices of All Items by 10,000 Yen from April

JFE Steel of Japan implements to raise both of domestic and export prices of all steel products by 10,000 yen per ton from April. Its cumulative rises in prices from the latter half of 2023 are 20,000~25,000 yen per ton. In light of progress of negotiations, the company intends to adjust markups individually and review them watching a price trend of each steel products if necessary.

The worldwide infation has an impact on Japan as well, and not only various product prices but also costs of labor and logistics are rising. As they are based on external factors including social requests.

Its cost cuts by self-help eforts have reached a limit. Under the situation, the company decided to revise its prices to secure an appropriate level in reproducible margins including needs of carbon neutral toward realization of the sustainable society, according to the company.

Tokiwakai Distributors’ H-beam Stock at End Jan Rises by 2.8% to 208 t/t
= Such stock exceeded 200 t/t for 2 months in a row =

Nippon Steel of Japan released on 21st distributors’ inventory of steel H-beams at the end of January surveyed by the ‘Tokiwakai’ consisting of distributors and traders to handle steel H-beams produced by Nippon Steel. According to it, such inventory was 208 thousand tons (abbreviated as t/t), up 5,600  tons or 2.8% from the end of the previous month for 2 months in a row. In recent years, such inventory was the 2nd highest following 209 t/t at the end of March 2021.

The incoming inventory in January was 67.6 t/t, largely down 10 t/t or 12.9% from the previous month. While, the outgoing inventory in that month was 62.0 t/t, down 4.7 t/t or 7.0% ditto. The turnover ratio was 3.35, up 0.32 from the previous month. It rose at all 3 areas of Tokyo, Osaka and Nagoya.

Among distributors, such voice is appearing that there are no feelings of oversupply and excessiveness and devoid sizes remain continuously unchanged. As a feeling, an environment is likely not to have changed yet from the previous month.

On domestic steel demand for H-beams, equivalent volumes of fabricated steels in December last year based on the groundbreaking statistics was 330 t/t, up 15% from the same month of the previous year for the frst time in 2 month. The company is observing that large-scale redevelopment projects at the metropolitan area raised such equivalent volumes of fabricated steels.

However, cumulative volumes from April-December last year had dipped below those of the same period of the previous year, and on an annualized rate, they have not reached 4 million tons yet. While, in addition to redevelopment projects at the metropolitan area, talks about construction of new factories starting with semiconductors are appearing. As such, potential demand is imminent, and the company says to watch moves of such demand.

AM Decides to Withdraw from Italian Operations

ArcelorMittal (AM) released on 20th to withdraw from Acciaierie d’Italia (ADI, former ILVA) of Italy of which 62% AM holds. With the request of investment company Invitalia that owns the remaining shares of 38% of ADI, the Italian Government transferred the ownership of ADI to government appointed commissioners. Responding to it, AM decided to withdraw from ADI.

Ternium Reports Proft of $2,092 Million for FY2023
= Its shipments of the Mexican segment hit a record high =

According to consolidated fnancial and operational results for the fscal year 2023 released on 21st by Ternium of a leading steel maker to operate businesses in North and South Americas, its net sales were US$17,610 million, up 7.3% from the previous year, its operating income was $2,198 million,
down 18.6% ditto, and its proft for the period was $2,092 million remaining almost unchanged ditto.

Its margins per ton fell from the previous year but its shipments hit a record high and contributed to its proft.

Its shipments were 14,213 thousand tons, up 19.5% ditto. Of these, those at the Mexican segment were 8,355 thousand tons, up 22.1% ditto. Its export to Iran and demand for manufacturers were brisk, which contributed to its highest performance in the past.

Those of the Brazilian segment were 2,014 thousand tons, largely up 178.6% ditto driven by the consolidation of Usiminas’ performance from the 2nd half of the year, and those of the Southern Region were 2,271 thousand tons, down 3.9% ditto. Its revenue per ton was $1,197, down $156 or 11.5% ditto.

Gerdau Reports Net Income of R$6,854 Million for FY2023

Jiangsu Shagang Leaves Late Feb Prices of All Steel Items Unchanged

Japan’s Jan Crude Steel Production Decrease by 1% to 7.27 Mil MT