- Demand recovery and rising costs offset lower scrap prices
- Widening global price gap strengthens EAF steel competitiveness
Tokyo Steel, Japan’s leading electric arc furnace (EAF) steelmaker, has kept its HRC, rebar and H-beam prices unchanged for September 2026 sales. The prices are as follows:
- HRC (1.7-22 mm): JPY 100,000/t ($626/t)
- Rebar (D13-25): JPY 93,000/t ($582/t)
- H-beams (100-300 mm): JPY 116,000/t ($726/t)
Factors influencing price decision
Expected demand recovery and higher costs support stability: Domestic market conditions are showing signs of improvement, with construction demand expected to strengthen from early autumn and orders for low-CO2 steel recovering as preparations for new legislation progress. Seasonal furnace maintenance is also extending steel plate lead times, pointing to tighter availability. Although scrap prices have eased following the yen’s temporary appreciation, Tokyo Steel expects manufacturing costs to continue rising, providing ongoing cost support.
Meanwhile, the widening price gap between Asia and the US and Europe is improving the competitiveness of electric-furnace steel in overseas markets, providing additional support for Japanese EAF producers. Together, these factors are offsetting the temporary relief from lower scrap costs and supporting price stability.
Global steelmakers adopt mixed HRC pricing strategies: China’s Baosteel has raised its domestic hot-rolled coil (HRC) and hot-dip galvanised iron (HDGI) prices by RMB 50/t ($7/t) m-o-m for September sales, supported by expectations of stronger downstream restocking and buying activity as the summer slowdown eases and the traditional “Golden September and Silver October” peak season approaches.
In contrast, Vietnam’s Hoa Phat Group has cut its domestic HRC (SAE1006, non-skin-passed) prices by around $13/t (VND 341,687/t) m-o-m to around $536/t (VND 14,090,000/t), excluding VAT, for September sales. The reduction reflects weak domestic demand and increasing competitive pressure from lower-priced imports.
Similarly, Formosa Ha Tinh Steel (FHS) has reduced its HRC prices by around $8/t (VND 209,949/t) for September deliveries. Under the revised pricing, FHS’s SAE1006 skin-passed HRC is offered at approximately $522/t CFR Ho Chi Minh City (HCMC) (VND 13,700,709/t) for orders above 20,000 t, down from around $530/t CFR (VND 13,913,817/t) in August.
Japan’s Kanto H2 scrap tender declines m-o-m: Japan’s August Kanto export scrap tender averaged JPY 49,086/t FAS ($309.87/t), down JPY 3,422/t from July and below JPY 50,000/t for the first time since February. The decline reflected weak Asian buying interest, a stronger yen and softer domestic scrap prices.
The tender attracted 12 bids from 14 traders for 105,400 t, with 20,000 t awarded for shipment to a Chattogram-based mill by 30 September. The landed cost is estimated above $380/t CFR Chattogram, broadly in line with current Japanese H2 import parity.
The yen strengthened to around JPY 158.4/$, reducing Japanese scrap’s export competitiveness. Tokyo Steel, Japan’s largest electric arc furnace (EAF) steelmaker, announced its third H2 scrap price cut in August, reducing purchase prices by JPY 500-1,000/t ($3-6/t) across all plants, effective 8 August. The latest revision marks the eighth consecutive price cut since July, the seventh since the previous Kanto tender, and the first adjustment following the latest Kanto tender held on 7 August.
Asian buyers remained cautious amid weak finished steel demand. Bangladesh continued selective purchases of higher-grade scrap, while Vietnamese buyers faced difficulty competing at the Kanto tender level.
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