Posted on 07 Oct 2026
Supply risks for Japanese slabs have intensified following a fire at Nakayama Steel Works in September. Damage to the reheating furnace cables has kept production suspended, with operations expected to resume in mid-October.
Additionally, JFE Steel estimates that severe weather in August and September caused a production loss of 600,000 tons at its Chiba plant, which has yet to return to full capacity. This factor marks the second most significant supply bottleneck in the slab market.
Hot-rolled coil (HRC) prices in Southeast Asia are trending upward in October, and the production halt at Nakayama Steel Works has reduced slab supplies. If JFE Steel were to resume production, buyers seeking alternative sources may well accept higher prices. Consequently, a decline in Japanese HRC export volume is likely to further solidify this upward trend.
Conversely, if Nakayama Steel Works resumes operations as planned and JFE’s production halt does not impact HRC exports, the upward momentum would be weakened.
Source:Yieh
