TOKYO (Nikkei)--Tokyo Steel Mfg. Co. (5423), Japan's largest electric-furnace steelmaker, said Tuesday that it will hike the price of all construction steel products, including H-beams, by 3-7% from next month, the first increase in seven months.

Steel demand shows signs of bottoming out as redevelopment projects in the Tokyo metropolitan area get under way following delays caused by the Great East Japan Earthquake.

H-beams in October contracts will sell for 79,000 yen per ton, a 5,000 yen increase. The move would recoup nearly 70% of the 7,000 yen fall since the disaster. Hot-rolled coil prices for steel sheet will go up by 3,000 yen to 68,000 yen.

While construction of factories and condominiums remained sluggish, a major redevelopment project in central Tokyo started this month. Outside of the capital, quake-proof reinforcement work on commercial buildings and schools is on the rise. Reconstruction projects in disaster-hit areas are expected to get into full swing early next year.

Tokyo Steel faces severe strains on profit. In the April-June quarter, parent-only net profit came to merely 300 million yen.

Meanwhile, Osaka Steel Co. (5449) has also decided to raise prices for the first time in seven months from October. It will increase the price of standard-shape steel by 6%, or 5,000 yen per ton.

Source: Nikkei