- Construction demand shows signs of improvement
- Baosteel rolls over Jun’25 HRC tags, FHS cuts them
Nippon Steel, a major Japanese steel producer, kept its hot-rolled coil (HRC) export prices steady m-o-m for July 2025 deliveries, with offers for the Middle East at $510/tonne (t) CFR and for ASEAN markets at $520/t CFR. The company said that it has closed all negotiations for June shipments and is now moving to offer for the following month. Notably, Nippon Steel is not offering to Europe and India due to trade restrictions.
Factors affecting export offers
1. Global steel prices show mixed trends: Chinese steel giant Baosteel rolled over HRC prices for June 2025 sales, marking the third consecutive month of stability, according to BigMint’s sources. However, Vietnamese steel giant Formosa Ha Tinh (FHS) reduced its HRC prices by approximately $12/t for June 2025 sales, with offers ranging within $508-518/t CIF Ho Chi Minh City (HCMC) depending on the quantity booked.
2. Domestic market expected to pick up: Japan’s domestic construction steel market experienced a nationwide downturn, primarily due to elevated costs and project delays. These challenges were exacerbated by the re-evaluation of certain materials in prominent construction projects. Despite these challenges, the supply-demand equilibrium is expected to stabilise. This is attributed to the initiation of new projects and the resumption of previously postponed ones, leading to increased quotations from steel suppliers. As a result, steel procurement, which had previously been hindered, is expected to gain momentum. Consequently, producers are likely to recover logistics and other deferred costs.
3. Kanto tender sees drop in bids m-o-m: The May Kanto Tetsugen scrap export tender concluded with a winning bid of JPY 42,389/t ($292/t) FAS for a 15,000-t lot of H2 scrap, marking a JPY 899/t ($6/t) drop from April. While the winning bid slightly exceeded some market expectations, offering a glimpse of potential recovery, overall trade remained muted.
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