- Higher production costs support HRC prices despite weak demand
- Rebar and H-beam prices increase on seasonal demand expectations
Tokyo Steel, Japan’s leading electric arc furnace (EAF) steel producer, has raised prices of hot-rolled coil (HRC), rebar and H-beams by JPY 3,000/t ($19/t) for November 2026 sales. The revised prices are as follows:
- HRC (1.7-22 mm): JPY 106,000/t ($670/t)
- Rebar (D13-25): JPY 96,000/t ($606/t)
- H-beams (100-300 mm): JPY 119,000/t ($752/t)
Factors influencing the price decision:
Rising production costs and seasonal demand expectations support steel prices: The prolonged conflict in the Middle East has pushed up crude oil and liquefied natural gas (LNG) prices, increasing fuel and electricity costs for steelmakers. Higher coking coal prices, broader inflationary pressures and elevated sea freight rates are adding to production costs and the landed cost of imported steel. These factors are supporting hot-rolled coil (HRC) and steel plate prices despite relatively weak demand for steel plate.
Meanwhile, rebar and H-beam prices are receiving support from seasonal demand expectations, with construction activity anticipated to improve alongside progress on large-scale data centre and semiconductor factory projects planned for late 2026 and 2027. However, the gradual recovery in construction activity continues to limit the extent of demand improvement.
Global steelmakers adopt mixed pricing strategies: China’s Baosteel has kept its domestic HRC prices unchanged month-on-month (m-o-m) for November 2026 sales, following a RMB 200/t ($30/t) increase for October.
In contrast, Vietnam’s Hoa Phat Group has raised its domestic HRC (SAE1006, non-skin-passed) prices by around $9/t (VND 235,074/t) m-o-m to approximately $545/t (VND 14,240,000/t), excluding VAT, for October 2026 sales.
Meanwhile, Formosa Ha Tinh Steel (FHS) has increased its HRC prices by around $15/t (VND 200,000/t) for October–November 2026 deliveries. Under the revised pricing, SAE1006 skin-passed HRC is offered at approximately $537/t CFR Ho Chi Minh City (HCMC) (VND 14,020,000/t) for orders of 20,000 t or above, compared with around $522/t CFR (VND 13,820,000/t) in September 2026.
Japan’s Kanto H2 scrap tender rises m-o-m: Japan’s October Kanto H2 export scrap tender settled at JPY 52,077/t FAS ($329/t), up JPY 3,964/t m-o-m from September. This marked the first increase after four consecutive monthly declines, reflecting stronger domestic demand and a firmer market outlook ahead of the tender.
The tender also attracted renewed buying interest from Bangladesh, with a Chattogram-based mill securing the 20,000 t cargo through a Japanese trading company. Separately, Tokyo Steel raised its H2 scrap purchase prices by JPY 500-1,000/t ($3-6/t) on 9 October, marking its second increase this month and taking prices to JPY 49,000–51,500/t ($310-325/t) DAP.
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