Osaka steel retaining December prices stable
Japan's biggest maker of areas, Osaka Steel, said Thursday it will keep segments costs for December contracts unaltered from November. Osaka Steel does not unveil its rundown costs. The current spot cost of channels (100x50 mm) in Osaka is around Yen 88,000-89,000/mt ($775-783/mt) and in Tokyo Yen 87,000-88,000/mt, and of points (6x50 mm) Yen 87,000-88,000/mt in Osaka and Yen 86,000-87,000/mt in Tokyo. Spot costs in Osaka are Yen 1,000/mt higher than multi month prior and in Tokyo stable over a similar period, wholesalers said.
An Osaka-based wholesaler said spot advertise costs in Osaka were expanding gradually as merchants embraced a solid position with an end goal to move prior climbs by makers. "In any case, we haven't finished moving all climbs by makers; we trust the maker [Osaka Steel] chose to trust that our costs will rise further," he said. A Tokyo-based merchant said the supply-request parity of segments was tight and costs in Tokyo were likewise anticipated that would begin expanding soon. "Makers are looking at extra increments to move higher info costs, for example, cathode and combination; past climb should be caught up in the market as right on time as could be allowed and merchants should be set up for the following climb," he said.
Osaka Steel last lifted its area costs by Yen 3,000/mt for October contracts. The Tokyo based wholesaler said small scale processes regularly plan winter shutdowns for support and New Year occasions so the "supply-request balance is relied upon to fix, and more expensive rates will be acknowledged by clients." Japan's segments yield, which avoids H-bars, rose 1.8% month on month to 155,900 mt in October, most recent Japan Iron and Steel Federation information appeared.