Tokyo Steel Manufacturing is cutting its domestic product prices for December contracts but the reduction – ¥5,000/tonne ($52/t) – is far lower than the range the mini mill announced last month for current month contracts.

“We believe this price update for December will be the pivotal price for demand recovery. We will continue to produce to match demand and will keep trying to adjust the supply and demand balance,” Tokyo Steel’s sales director Naoto Ohori declared.

Last month Tokyo Steel slashed prices by an unprecedented ¥23,000-35,000/t ($238-363/t) for November contracts to bring its prices closer into line with international levels. It also hoped to create a new base price to meet demand and spur recovery, as Steel Business Briefing reported.

The mini mill also announced its intention to cut crude steel output during the present October-March half, by about 250,000 tonnes compared with first half, to about 1.35m t. The reduction was to meet lower demand for H-beams and other construction steel products in the domestic and overseas markets.