en.Wedoany.com Reported - Tokyo Steel Manufacturing Co., Ltd. announced in June 2026 that it will raise contract prices for all steel products by 2,000 to 3,000 yen per ton (approximately 100 to 150 yuan) in July 2026. This marks the company's third price hike in 2026. The increase is primarily driven by rising costs of key raw materials such as scrap steel, as well as higher electricity and logistics expenses, rather than strong market demand.

Founded in 1934 and headquartered in Chiyoda-ku, Tokyo, Tokyo Steel is one of Japan's largest electric arc furnace (EAF) steelmakers and the first Japanese steel company to produce hot-rolled steel using EAF technology. The company uses scrap steel as its main raw material for steelmaking via electric arc furnaces, with key products including hot-rolled coils, thick plates, H-beams, channels, angles, and rebar for construction and industrial use. Unlike Japan's major integrated steelmakers dominated by blast furnace methods (such as Nippon Steel and JFE Steel), Tokyo Steel's EAF process makes its production costs more sensitive to fluctuations in scrap steel and electricity prices. As a result, its price adjustments are often seen as a barometer of supply-demand dynamics and cost changes in Japan's domestic steel market. Currently, the company's flagship hot-rolled coil prices range from approximately 84,000 to 88,000 yen per ton (about 4,200 to 4,400 yuan), while H-beam prices range from 87,000 to 91,000 yen per ton (about 4,350 to 4,550 yuan).

This price hike comes against a backdrop of relatively stable demand in Japan's domestic construction and manufacturing sectors. After competitors implemented similar price increases, Tokyo Steel is attempting to restore profitability eroded by rising costs. Previously, other Japanese steel companies had taken similar price-raising actions to cope with cost pressures from persistently high scrap steel prices. Tokyo Steel operates a monthly price adjustment mechanism, and its pricing strategy significantly impacts small and medium-sized steel users and construction contractors in Japan. Industry analysts note that this price increase reflects EAF steelmakers' efforts to maintain profit margins under cost pressures, while also potentially transmitting cost impacts to downstream construction and manufacturing sectors' procurement expenses.

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