- HRC price hike reflects rising production costs
- Weak construction demand limits long steel hike
Tokyo Steel, Japan’s leading electric arc furnace (EAF) steel producer, has raised its hot-rolled coil (HRC) price by JPY 3,000/tonne (t) ($19/t) to JPY 103,000/t ($665/t) for October 2026 sales, from JPY 100,000/t ($646/t) in September, while keeping its rebar and H-beam prices unchanged m-o-m. The revised prices are as follows:
- HRC (1.7-22 mm): JPY 103,000/t ($665/t)
- Rebar (D13-25): JPY 93,000/t ($601/t)
- H-beams (100-300 mm): JPY 116,000/t ($749/t)
Factors influencing price decision
HRC hike reflects rising input costs; weak construction demand limits long steel increases: Tokyo Steel raised HRC prices for October 2026 sales amid soaring international energy prices, which have increased import costs and pushed up manufacturers’ production costs. With these cost increases gradually being passed through the supply chain to end users, the company raised HRC prices to improve profitability.
In contrast, rebar and H-beam prices were kept unchanged as construction activity, although showing some recovery, remains at a low level. Expectations of large-scale projects starting from the end of 2026 and continuing into 2027 are improving the market outlook, but current demand has yet to strengthen enough to support higher long steel prices. Continued imports of low-priced H-beams, particularly for foundation-related projects, are also limiting suppliers’ scope to raise prices.
Global steelmakers raise HRC prices: China’s Baosteel has raised its domestic hot-rolled coil (HRC) prices by RMB 200/t ($179/t) m-o-m for October sales, amid higher raw-material costs, particularly coking coal, which have raised steelmaking expenses and provided stronger cost support to finished steel prices. Expectations of a gradual improvement in demand during the traditional “Golden September and Silver October” period have also supported the increase.
Similarly, 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 around $545/t (VND 14,240,000/t), excluding VAT, for October sales.
Meanwhile, Formosa Ha Tinh Steel (FHS) has raised its HRC prices by around $15/t (VND 200,000/t) for October deliveries. Under the revised pricing, FHS’s 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, up from around $522/t CFR (VND 13,820,000/t) in September.
Japan’s Kanto H2 scrap tender declines m-o-m: September’s Kanto H2 export scrap tender settled at JPY 48,113/t FAS ($313.6/t), down JPY 973/t m-o-m from August’s JPY 49,086/t. The tender serves as a key reference for export buyers and reflects scrap collection costs, which could influence Tokyo Steel’s price revision.
This marked the fourth consecutive monthly decline, driven mainly by yen appreciation and higher freight costs. However, the stronger yen lifted the dollar value of the winning bid despite the lower JPY-denominated price.
The tender attracted 14 bids from 14 trading companies, with total bid volume at 100,400 t, down 5,000 t from August. Only the first bid of 20,000 t at JPY 48,113/t was awarded, with shipment due by October 31. A Chattogram-based mill secured the cargo through a Japanese trading company, marking Bangladesh’s continued participation in the Kanto tender.
The winning tender translates to an estimated $380-385/t CFR Chattogram, including freight of around $75-80/t. Buying interest in Japan’s key export markets, particularly Bangladesh and Vietnam, is improving, although higher freight above $75/t to Bangladesh and $60/t to Vietnam is limiting buyers’ bidding capacity.
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