TOKYO, Aug 23 (Reuters) - Tokyo Steel Manufacturing Co announced its first across-the-board price rise in four months on Monday, citing a rebound in steel scrap costs, but said a steep rise in scrap prices was unlikely after October given still weak demand.
"Prices of iron ore and steel scrap have rebounded as the tide in the raw materials markets has turned," Naoto Ohori, managing director at Tokyo Steel, Japan''s biggest construction steel maker, told a news conference.
"The market for steel scrap is now strong, but it is unlikely to continue rising at a robust pace after October, given current market conditions."Tokyo Steel said it would raise the price of H-beam steel by 3,000 yen per tonne to 72,000 yen ($841) in September.
The price of hot coil will rise by 2,000 yen per tonne to 64,000 yen.
"Recent rises in steel prices in China are a result of heavy de-stocking," said Takashi Murata, an analyst at Daiwa Securities Capital Markets Co. "We have yet to see a recovery in demand."Tokyo Steel boosted its purchase price for steel scrap twice in August, by a total of 2,500 yen to 32,000 yen, as South Korean mills stepped up scrap imports on a recovery in demand, tightening the Tokyo market. ($1=85.61 Yen) .