- Rising raw material costs pressure steelmaker margins
- Middle East tensions continue adding market uncertainty
Nippon Steel has decided to raise prices by JPY 5,000/t ($32/t) for all domestic store sales, reroll, pipe and lightweight steel thin plate products, including hot-rolled blackened skin, pickled, cold-rolled and coated products. The increase will apply from October contracts, equivalent to November shipments, taking the cumulative price hike for fiscal year 2026 to JPY 20,000/t ($127/t).
Regarding the JPY 5,000/t ($32/t) increase, Nippon Steel stated, “Once we decide on a price increase, we will definitely implement it. In addition to soaring coking coal prices, various costs such as labour and logistics expenses continue to rise, and although the scale exceeds 5,000 yen per tonne, we decided based on current market trends.” The company will continue monitoring market and cost trends to “promptly determine and implement further price increases.” Additional increases for group company products are also under consideration.
Nippon Steel had already announced a JPY 15,000/t ($95/t) price increase during the first half of fiscal year 2026 (April-September), including the impact of higher costs amid worsening conditions in the Middle East. The company stated, “the price increase was completed within the first half.” On current operations, it said, “We have received many orders and supply is tight. Domestic demand is gradually recovering, and cargo movement is showing signs of recovery.”
On the broader market environment, Nippon Steel said the US economy remains resilient, while growth remains subdued amid China’s ongoing real estate downturn and weaker personal consumption. The deteriorating situation in the Middle East is also adding uncertainty. In the steel market, the company sees geopolitical risks and reduced coking coal supply following coal mine accidents, including the recent accident in China, as key factors driving higher steel prices globally.
Despite generally weak domestic demand due to high costs and labour shortages, machinery orders are showing signs of recovery and automobile production is increasing. Large-scale semiconductor- and AI-related construction projects are also emerging, pointing to improving steel demand.
Amid this, in the domestic market, steelmakers are raising prices, while higher costs in distribution areas such as processing and logistics are also being passed on to resale prices. The company therefore recognises that “the domestic market is rising.”
Note: This article is published as part of a content exchange agreement between Japan Metal Daily and BigMint.
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