Blog | Daiwa Lance International

Steel Market Trend | Unexpected Rise in Japan Scrap Prices Amid Global Slowdown

Written by Author Name | 2025.07.24

The global steel market is presenting a complex picture this week. While some regions experience slight price increases, a concerning trend of softening demand and declining prices is taking hold in others. This update will delve into the details, exploring price movements and potential implications across key steel-producing and consuming regions.

Japan 

Export scrap prices in Japan registered a modest increase of JPY 150/t ($1/t), reaching JPY 41,250/t ($277/t) FOB Tokyo Bay as of July 18. The market remains largely stable amid limited international demand, primarily impacted by seasonal production slowdowns and global market uncertainty. Domestic scrap prices held steady within the JPY 38,000-40,500/t ($255-272/t) range, with market activity dampened by subdued demand, particularly from the construction sector.

China 

Domestic hot-rolled coil (HRC) prices in China increased week-over-week by Yuan 50/t ($7/t), reaching Yuan 3,190/t ($444/t) as of July 19, primarily driven by a positive trend on the Shanghai Futures Exchange (SHFE). Export HRC prices also rose by $8/t during the week, recorded at $458/t. Despite these price gains, the market remains constrained by high inventory levels and persistently weak demand.

Vietnam

Scrap import activity in Vietnam remains subdued, primarily due to persistently weak rebar demand resulting from stagnation in the construction sector. Nonetheless, import scrap prices from Japan experienced a slight increase of $2/t, reaching $320/t CFR main ports. Import prices for HRC from China also trended higher, reflecting the upward momentum in Chinese HRC pricing.

Europe 

In Northern Europe, hot-rolled coil (HRC) prices declined by EUR 11/t ($12/t) this week, settling at EUR 535/t ($598/t) on July 18—the lowest level since November 2020. Southern Europe mirrored this trend, with HRC prices falling by EUR 6/t ($7/t) to EUR 520/t ($591/t). Import HRC was reported at EUR 465/t ($519/t). Market activity remains subdued under the continued influence of CBAM, safeguard measures, and additional tariffs imposed by the US.

America

Hot-rolled coil (HRC) prices in the US recorded a marginal decline of $2/t week-over-week, reported at $875/t. US flat steel prices remained elevated due to the impact of higher tariffs. Scrap prices in the US were largely stable, while anticipation of upcoming tariffs on Brazilian pig iron influenced market sentiment. Domestic rebar prices posted a slight increase during the week, whereas wire rod prices were unchanged.

In Brazil, hot-rolled coil (HRC) prices increased by $10/t over the past two weeks, reaching $780/t. High-grade iron ore (65% Fe) also trended upward, offered at $114/t CFR, marking an $8/t rise within one week. Conversely, export rebar prices declined by $10/t over the last four weeks, standing at $850/t, while export slab prices saw a modest reduction of $3/t to $472/t FOB.

About Daiwa Lance

Daiwa Lance's primary business is the manufacturing of highly durable, heat-resistant steel lance pipes essential for the steel and metal-making industries. Our core products include calorized and ceramic-coated lances used for injecting oxygen and carbon into furnaces, as well as thermic lances for high-temperature cutting applications. In addition, we also produces a range of carbon, galvanized steel pipes and lancing accessories to support these primary functions.

Our products are manufactured in our Vietnam factory, which is certified with ISO 9001 and ISO 14001. Under strict quality and environmental management systems, we ensure a stable supply of high-quality lance pipes. Since our establishment in 1997, we have earned high praise from customers worldwide, achieving a satisfaction rate of 99.2%.

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