- Price stability reflects cautious stance amid uneven demand recovery
- Formosa, Hoa Phat raise HRC prices m-o-m in Mar’26
Tokyo Steel, Japan’s leading electric arc furnace (EAF) steel producer, has kept its HRC (1.7-22 mm) prices unchanged for March 2026, marking the fifth month of price stability. Moreover, prices of rebar and H-beams were also kept stable m-o-m.
The latest prices are as follows:
- HRC (1.7–22 mm): JPY 86,000/t ($561/t)
- Rebars (D13–25): JPY 82,000/t ($535/t)
- H-beams (100–300 mm): JPY 103,000/t ($672/t)
Factors influencing Tokyo Steel’s pricing
1. Market sentiment remains mixed as recovery remains gradual: Domestic demand in Japan remains mixed, though early signs of improvement are emerging. Inquiries for building materials have increased with the start of the new fiscal year, supported by rising orders tied to capital investment projects such as logistics hubs, data centres, and factories. Plate demand continues to stay strong, driven by industrial machinery and digital transformation-related sectors, while automotive demand is gradually recovering. However, a recent cold wave, coupled with election-related disruptions, has restricted cargo movement nationwide, limiting market activity and keeping the recovery pace modest.
2. Global steel majors keep HRC prices elevated: Vietnam’s leading steel producer, Formosa Ha Tinh (FHS), has raised its hot-rolled coil (HRC) prices by around $5/t m-o-m for March 2026 sales. Following the revision, FHS’s HRC (SAE1006, skin-passed) is now priced at $510–520/t CIF Ho Chi Minh City (HCMC), compared with $505–515/t CIF in February, depending on the volume.
Additionally, Hoa Phat Group has increased its HRC (SAE1006, non-skin-passed) prices for March 2026 sales by $9/t m-o-m to $519/t (VND 13,520,000/t), up from $510/t (VND 13,420,000/t) a month earlier, excluding VAT. The major mill announced the price hike amid improved domestic demand and an increase in import prices in the region.
3. Kanto scrap export offers rise m-o-m: Japan’s Kanto scrap tender surged to a nearly three-year high in February, marking the seventh consecutive monthly increase, with prices rising by JPY 1,312/t ($8/t) m-o-m to JPY 48,167/t ($310/t), a level last seen in June 2023 (JPY 48,167/t | $310/t).
Outlook
Tokyo Steel’s prices are expected to remain largely stable in the near term, as downstream demand continues to show uneven momentum. Market sentiment is expected to gradually improve as construction activity recovers, however any meaningful upside is dependent on whether clearer signs of a sustained domestic demand recovery emerge.
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