- Weak demand, stable pricing outlook
- Baosteel, Hoa Phat keep Nov HRC prices unchanged
Tokyo Steel, Japan’s leading electric arc furnace (EAF) steel manufacturer, has kept prices of hot-rolled coils (HRCs) (1.7-22 mm) stable for November 2025 shipments compared to the previous month. Additionally, the company rolled over prices of rebars and H-beams for the same period.
Revised prices are as follows:
- HRCs (1.7-22 mm): JPY 86,000/t ($564/t)
- Rebars (D13~25): JPY 82,000/t ($538/t)
- H-beams (100-300 mm): JPY 100,000/t ($656/t)
Factors influencing Tokyo Steel’s pricing
1. Domestic market remains subdued: Domestic construction demand remains subdued, with steel shipments yet to rebound as strongly as anticipated since October. However, manufacturers are increasingly resisting further price cuts amid shrinking profit margins in both production and sales.
Moreover, market inventories remain low and new inquiries for upcoming construction and infrastructure projects are aiding a gradual pickup in shipments. These improving demand signals encouraged the company to maintain price stability instead of implementing further cuts.
2. Key global mills’ pricing trends: The world’s top steel manufacturer, Baosteel, has rolled over HRC prices for November sales, after keeping them stable in October too. This stability was attributed to weak domestic demand and mixed trends in Shanghai Futures Exchange (SHFE) prices.
Additionally, Vietnamese steel major Hoa Phat Group has kept its HRC (SAE1006, non-skin-passed) prices stable m-o-m for November sales after increasing them in the previous month. Prices for November were at approximately $528/t or VND 13,943,756/t for the southern region, excluding VAT. This stability in prices can be attributed to competitive import offers.
3. Kanto scrap export offers rise: Japan’s October 2025 Kanto scrap export tender witnessed a sharp m-o-m uptick of JPY 2,346/tonne (t) ($15/t), with a 20,000-t H2 lot reportedly awarded via a Japanese trading firm to a Bangladesh, Chattogram-based mill at JPY 44,316/t ($290/t) FAS Japan. This upward movement was driven by a weaker JPY (from JPY 147/$ on 10 September to 153/$ on 9 October), which supported higher export offers and resulted in a dollar value increase of $15/t.
Outlook
In the short term, Japan’s domestic steel demand is expected to recover gradually, supported by steady industrial investment and rising project inquiries. Additionally, export orders are improving, though labour shortages and weak construction activity may limit the pace of recovery.
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