Japan: Tokyo Steel keeps steel prices stable m-o-m for Feb'25 sales

• Bids rise $13/t m-o-m at Kanto scrap export tender
  
  
• Baosteel rolls over, FHS cuts HRC prices in Feb'25
  
  

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 February 2025 shipments compared to the previous month. Additionally, the company rolled over prices of rebars and H-beams for the same period.

Post-revision, prices were as follows:

• HRCs (1.7-22 mm): JPY 92,000/tonne (t) ($590/t)
  
  
• Rebars (D13~25): JPY 88,000/t ($564/t)
  
  
• H-beams (100-300 mm): JPY 115,000/t ($737/t)
  
  

Market highlights

1. Kanto scrap export tender sees rise in bids: The January scrap export tender of Japan's Kanto Iron and Steel Cooperative Association witnessed higher bids in both JPY and USD terms. The lot was sold at JPY 44,810/t ($283/t), and bids increased by $13/t m-o-m. Notably, the tender attracted higher bids despite limited buying interest for Japanese H2.

2. Domestic steel demand remains sluggish: Japan's domestic demand for steel products remains sluggish, particularly in the construction sector, where high costs and companies' cautious attitudes have pressured trades. However, there is a growing willingness to invest in large-scale projects, such as logistics warehouses and data centres, which could lead to a recovery in demand. While inventories of some steel products are decreasing, a full recovery in demand across various industries is still pending.

3. Key global mills' steel prices show mixed trends: Baosteel, the world's leading steel manufacturer, kept HRC prices stable for the third consecutive month in February 2025 amid subdued domestic demand. Moreover, prices of hot-dip galvanised products also remained flat m-o-m.

However, Formosa Ha Tinh (FHS), Vietnam's largest steel producer, reduced its HRC prices by approximately $5/t m-o-m for February 2025 sales. Following this adjustment, FHS's HRC prices (SAE1006, skin-passed) were at around $515/t CIF Ho Chi Minh City.

Outlook

Japan's steel market is poised for a rebound, fuelled by rising investments in large-scale manufacturing projects. As demand for steel products strengthens, particularly in the early spring, the industry can expect improving conditions. Steel manufacturers will need to navigate global market trends, policy changes, and shifting supply-demand dynamics to ensure a sustained recovery.