Japan: Tokyo Steel raises HRC prices by $31/t m-o-m for May'26 sales

• Rising input costs drive Tokyo Steel price hike
  
  
• Formosa, Hoa Phat increase HRC prices for May'26 sales
  
  

Tokyo Steel, Japan's leading electric arc furnace (EAF) steel producer, has raised its HRC (1.7-22 mm) prices by JPY 5,000/t ($31/t) m-o-m for May 2026 sales. Moreover, rebar and H-beam prices have also been increased by JPY 3,000/t ($19/t) and JPY 5,000/t ($31/t) m-o-m, respectively.

Following the revision the latest prices are as follows:

HRCs (1.7-22 mm): JPY 98,000/t ($616/t)

Rebars (D13-25): JPY 90,000/t ($566/t)

H-beams (100-300 mm): JPY 113,000/t ($711/t)

Rising input costs and strengthening market sentiment

Domestic steel demand in Japan remains uneven across key segments. In the construction sector, activity continues to be somewhat subdued, with limited movement in building materials. However, underlying demand is gradually improving, as reflected in a shift from delivery inquiries to actual procurement for summer-scheduled projects that were previously delayed due to elevated material costs. At the same time, strengthening market sentiment, supported by distributors increasingly passing on successive increases in steel and input costs, is contributing to firmer pricing conditions, while rising cargo movement nationwide is expected to support a gradual improvement in overall market activity.

In contrast, demand in the steel plate segment remains robust across the manufacturing sector, despite some export-related challenges and raw material procurement issues linked to the Middle East situation. Rising energy costs, along with efforts to mitigate procurement risks, are driving interest in energy and labor-saving machinery, which is likely to support future capital investment, thereby reinforcing demand resilience in the plate segment.

Global steel majors' keep HRC prices elevated

Vietnam's leading steel manufacturer, Formosa Ha Tinh (FHS), has increased its hot-rolled coil (HRC) prices by around $32/t (VND 842,827/t) for sales in May 2026. Post adjustment, FHSs HRC (SAE1006, skin-passed) is now priced at approximately $550/t (VND 14,486,647/t) Ho Chi Minh City (HCMC) compared with $518/t (VND 13,641,917/t) in April 2026.

Similarly, Hoa Phat Group has raised its HRC (SAE1006, non-skin-passed) prices by $30/t (VND 790,580/t) m-o-m for May'26 sales. Prices in the southern region stood at $547/t (VND 14,420,000/t), excluding VAT. Rising global steel prices, an uptick in Chinese offers, and higher production costs, driven by ongoing geopolitical tensions and elevated oil prices, prompted the hike.

Kanto scrap export offers rise m-o-m

Japans Kanto Tetsugen export tender rose sharply in April, with H2 scrap at JPY 54,329/t ($342/t) FAS, up JPY 4,208/t m-o-m and the highest since March 2023. The tender awarded 10,000 t of H2 scrap at JPY 54,329/t ($342/t) FAS, up JPY 4,208/t m-o-m, translating to around JPY 55,300/t ($348-350/t) FOB Japan which exceeded buyer expectations, widening the bid-offer gap and slowing negotiations.

Cargo is likely bound for Vietnam, though Bangladesh interest remains weak due to high landed costs. Domestic prices at JPY 51,000-52,000/t and Tokyo Steels hike to JPY 52,500/t ($330/t) continue to support the upward trend.

Outlook

Tokyo Steel's price hike reflects persistent cost pressures in Japans steel market, primarily driven by elevated raw material prices. However, we expect domestic demand recovery to remain gradual, with construction activity still subdued and procurement only slowly gaining traction. Market sentiment is likely to improve in the coming months, supported by a pickup in project-linked steel consumption and continued strength in the manufacturing and plate segments, which should help sustain overall demand.