- Rising raw material costs drive Tokyo Steel price hike
- Formosa, Hoa Phat show mixed HRC pricing for Apr’26
Tokyo Steel, Japan’s leading electric arc furnace (EAF) steel producer, has raised its HRC (1.7-22 mm) prices by JPY 7,000/t ($44/t) m-o-m for April 2026 sales. Moreover, prices of rebar and H-beams have also been increased by JPY 5,000/t ($31/t) m-o-m.
Following the revision the latest prices are as follows:
- HRCs (1.7-22 mm): JPY 93,000/t ($584/t)
- Rebars (D13-25): JPY 87,000/t ($546/t)
- H-beams (100-300 mm): JPY 108,000/t ($678/t)
Factors influencing pricing:
1. Market sentiment cautious, gradual improvement expected: Domestic demand in Japan remains cautious amid uncertainty over future construction activity in some regions and the availability of alternative building materials, while delays in passing through higher prices have kept market activity slow. However, steelmakers are increasing rolling schedules, and scattered inventories in the distribution sector have led to more inquiries for shorter delivery periods. Capital investment projects such as logistics warehouses, data centres, and factories are currently in a temporary lull but are expected to support a rebound in cargo movement and overall market activity in the coming period.
Plate demand remains firm, supported by machinery, industrial equipment, and digital transformation-related investments. Meanwhile, strong semiconductor-related investments, along with a gradual recovery in shipbuilding and automotive demand toward the new fiscal year, are expected to provide additional support. Import trends will continue to depend on China’s supply-demand balance, exchange rates, and energy prices, though tighter supply toward Japan could lend support to the domestic market.
2. Global steel majors’ HRC prices mixed: Vietnam’s leading steel manufacturer, Formosa Ha Tinh (FHS), has raised its hot-rolled coil (HRC) prices by around $3/t m-o-m for sales in April. With this adjustment, FHS’s HRC (SAE1006, skin-passed) is now priced at approximately $518/t (VND 13,635,000) Ho Chi Minh City (HCMC) compared with $515/t (VND 13,615,000) in March.
However, Hoa Phat Group has kept its HRC (SAE1006, non-skin-passed) prices unchanged m-o-m for April sales. Prices in the southern region remained at $519/t (VND 13,520,000/t), excluding VAT. The mill maintained its prices amid weak domestic demand and steady import offers in the region. A 16% m-o-m decline in imports to 1.52 million tonnes (mnt) in January supported price stability.
3. Kanto scrap export offers rise m-o-m: Japan’s Kanto scrap export tender rose for the eighth straight month in March, H2 cargo sold at JPY 50,121/t FAS, up by JPY 2,038/t m-o-m, reaching levels last seen in March 2024. The price equals about $325/t FOB Japan, likely for Bangladesh at $385-390/t CFR.
Outlook
Tokyo Steel’s price hike reflects ongoing cost pressures in Japan’s steel market, mainly driven by higher raw material prices. However, the recovery in domestic demand is expected to remain gradual, as construction activity and capital investment projects are currently in a lull. Market sentiment may improve in the coming months, with project-linked steel consumption expected to gradually pick up ahead of the new fiscal year.
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