- Domestic steel demand remains mixed but broadly stable
- Baosteel, Formosa, Hoa Phat raises HRC prices for Jun’26 sales
Tokyo Steel, Japan’s leading electric arc furnace (EAF) steel producer, has kept its hot-rolled coil (HRC) prices unchanged m-om for June 2026 sales. Moreover, prices for rebar and H-beams were also kept stable m-o-m.
The latest prices are as follows:
HRC (1.7-22 mm): JPY 98,000/t ($617/t)
Rebar (D13-25): JPY 90,000/t ($566/t)
H-beams (100-300 mm): JPY 113,000/t ($711/t)
Factors influencing Tokyo Steel’s price revision
Domestic steel demand remains mixed but broadly stable: Japan’s domestic steel market is showing a mixed but broadly stable demand trend. The extended holidays are expected to support market activity in the construction and building materials sector, although shortages of certain materials continue to delay some projects. Demand conditions still vary across products and industries, with some buyers shifting to substitute materials to manage supply issues. At the same time, mills and distributors are awaiting clearer market signals before passing on higher steel and operating costs, which could eventually support a gradual improvement in trading activity and cargo movement.
Meanwhile, demand from Japan’s manufacturing sector remains relatively firm despite some export adjustments linked to the Middle East situation. Reduced shipments to specific regions are being partly offset by demand from alternative markets and stable domestic capital investment. In addition, rising import steel prices, including from China, are improving the pricing environment for local suppliers.
Global steel majors’ keep HRC prices elevated: Baosteel, the world’s leading steel manufacturer, has raised its HRC prices by RMB 100/t ($15/t) m-o-m for Jun’26 sales. The increase follows a rise in SHFE HRC futures (Oct’26 contracts), which surged by RMB 210/t ($31/t) m-o-m to RMB 3,485/t ($513/t) as of 8 May’26. Meanwhile, hot-dip galvanised (HDGI) prices were also increased by RMB 100/t ($15/t) m-o-m.
Meanwhile, Formosa Ha Tinh Steel (FHS), a major Vietnamese steel producer, has also raised its hot-rolled coil (HRC) prices by around $58/t (1,526,203 VND/t) for shipments in June-July 2026. Post adjustment, FHS’s HRC (SAE1006, skin-passed) is now priced at approximately $608/t (16,027,056 VND/t) Ho Chi Minh City (HCMC) compared with $550/t (14,447,462 VND/t) in May 2026.
Moreover, Hoa Phat Group, has also increased its HRC (SAE1006, non-skin-passed) prices by $50/t (VND 1,315,989/t) m-o-m for Jun’26 sales. Following the revision, prices in the southern region stood at around $597/t (VND 15,699,710/t), excluding VAT. The price hike is primarily driven by rising import prices and higher raw material costs.
Japan’s Kanto H2 scrap tender rises m-o-m: Japan’s May 2026 Kanto scrap tender extended its bullish trend for the tenth consecutive month, with 10,000 t of H2 scrap settled at JPY 54,602/t ($346/t) FAS, up by JPY 273/t m-o-m. Market participants expect Vietnam to be the likely destination for the cargo, reflecting continued Vietnamese demand for Japanese-origin scrap, while the firmer Japanese yen against the US dollar also supported stronger export offer levels.
Outlook
Market sentiment in Japan’s steel sector is expected to remain broadly stable with cautious optimism in the coming weeks. Domestic demand is steady, supported by firmer cost and import price signals as well as seasonal construction activity. However, uneven end-use demand and ongoing project delays are restraining overall momentum, keeping buyers cautious. Rising scrap costs are gradually improving sentiment among mills and distributors, but a sustained recovery will depend on a clearer pickup in downstream consumption and manufacturing activity.
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