Tokyo Steel to raise prices of steel bars in March

TOKYO (Reuters) - Tokyo Steel Manufacturing Co Ltd, Japan's top electric-arc furnace steelmaker, on Monday said it will raise prices for its steel bars by 3% in March to reflect tight market conditions.

The hike comes after the company kept prices for all of its steel products steady for a fifth consecutive month in February.

For March, prices for steel bars, including rebar, will be lifted to 100,000 yen ($745) a tonne from 97,000 yen a tonne, while other products will remain unchanged, with its main H-shaped beams staying at 124,000 yen a tonne.

"Construction demand in Japan is expected to remain firm in early spring and beyond as many redevelopment projects, manufacturing-related investments and other large-scale projects are coming up," Tokyo Steel said in a statement.

The local market conditions for sheet products will likely improve thanks to a recovery in automobile output and stronger demand in construction and industrial machinery, it added.

Tokyo Steel's pricing is closely watched by Asian rivals such as South Korea's Posco and Hyundai Steel , and China's Baoshan Iron & Steel Co Ltd (Baosteel).

($1 = 134.1500 yen)

(Reporting by Yuka Obayashi; Editing by Kirsten Donovan)