Japan: Tokyo Steel raises HRC prices by $12/t m-o-m for Jul'26 sales

• Construction demand recovery, cost pressures drive price hike
  
  
• Global steelmakers' HRC price trends for Jul'26 remain mixed
  
  

Tokyo Steel, Japan's leading electric arc furnace (EAF) steel producer, has raised its hot-rolled coil (HRC) (1.7-22 mm) prices by JPY 2,000/t ($12/t) m-o-m for July 2026 sales. Moreover, prices of rebar and H-beams have also been increased by JPY 3,000/t ($19/t) m-o-m, respectively. The latest prices are as follows:

• HRC (1.7-22 mm): JPY 100,000/t ($624/t)
  
  
• Rebar (D13-25): JPY 93,000/t ($581/t)
  
  
• H-beams (100-300 mm): JPY 116,000/t ($724/t)
  
  

Factors influencing Tokyo Steels price revision

Production costs rise, demand recovers gradually:Production costs for Japanese steelmakers continued to rise, driven by higher energy and raw material prices. Geopolitical instability in the Middle East has further heightened volatility in global supply chains, adding to cost pressures. As a result, steelmakers are increasingly passing these higher production costs on to the market.

On the demand side, trends remained mixed across end-user sectors. Construction-related consumption showed gradual improvement, supported by stronger project activity, while demand from some steel plate-consuming industries varied by sector. Overall, domestic demand is showing signs of gradual recovery, providing additional support to prices amid persistent cost pressures.

Kanto H2 tender price dips m-o-m but remains elevated: Japan's June 2026 Kanto H2 scrap export tender price fell marginally by JPY 96/t ($1/t) m-o-m to JPY 54,506/t ($340/t) FAS for a 20,000 t cargo, ending a ten-month streak of consecutive gains. Despite the slight correction, prices remained elevated, supported by steady regional demand and a weaker yen. The winning bid price has remained almost flat for three consecutive months, remaining in the JPY 54,000/t range.

The cargo is expected to be shipped to Chattogram, Bangladesh, marking the country's return to the Kanto market after a two-month absence. Meanwhile, domestic H2 scrap prices declined by JPY 700/t ($4/t) to JPY 52,000/t ($325/t), although market participants largely viewed the adjustment as a technical correction rather than a shift in the broader market trend.

Global steelmakers adopt mixed HRC pricing strategies for Jul'26: Baosteel, the world's largest steel producer, has kept its HRC prices unchanged m-o-m for July 2026 sales amid subdued domestic demand. Meanwhile, hot-dip galvanised iron (HDGI) prices were also left unchanged m-o-m.

In contrast, Vietnamese steelmaker Hoa Phat Group reduced its HRC (SAE1006, non-skin-passed) prices by $13/t (VND 473,836/t) m-o-m for July 2026 sales. Following the revision, prices in southern Vietnam were set at around $584/t (VND 15.37 million/t), excluding VAT. The reduction was primarily driven by lower import offers in the region, which continued to exert downward pressure on domestic prices. Indian HRC export offers to Vietnam were heard at around $583/t in May, while a booking of approximately 60,000 t was reportedly concluded at $570-585/t CFR Ho Chi Minh City for June-July shipment.

Similarly, Formosa Ha Tinh Steel (FHS) cut its HRC prices by around $23/t (VND 605,237/t) m-o-m for July-August 2026 shipments. Following the adjustment, FHS's SAE1006 skin-passed HRC is priced at approximately $585/t (VND 15,396,443/t) in Ho Chi Minh City, down from $608/t (VND 16,001,773/t) for June 2026 sales.

Outlook

Tokyo Steel's HRC prices are expected to remain firm in the coming weeks, supported by improving domestic demand, particularly from the construction sector, alongside expectations of further steel price increases and higher borrowing costs, which are encouraging advance procurement. Continued cost pressures are also likely to lend support. However, uneven demand across some end-user sectors and softer global sentiment, reflected in recent HRC price rollovers and cuts by major producers, may limit the scope for further gains.