[SMM Steel] Turkish Rebar Price Rally Persists: Strong Domestic Demand Lifts EXW Prices While Export Trade Struggles

Australia’s National Environmental Protection Agency has approved an extension of the Saraji open-cut mine in Queensland, operated by BHP Mitsubishi Alliance, allowing a further 55 million tonnes of steelmaking coal to be extracted between now and 2055. It is the agency’s first approval of a coal project since it began operations on July 1, 2026. The approval includes conditions intended to protect threatened-species habitats and water resources. The Climate Council estimated that using the coal overseas for steelmaking could generate about 120 million tonnes of carbon dioxide over the mine’s remaining life, although this is the organisation’s estimate.

Korea Southern Power Co., Ltd. (KOSPO) issued the ELT10 and ELT11 long-term thermal coal tenders on September 3, 2026. The tenders are open only to KOSPO’s existing suppliers and will close at 14:00 Korea Standard Time on September 9. The two tenders cover five contract years and seek a combined nominal volume of approximately 2.99 million tonnes. ELT10 seeks thermal coal with a minimum net calorific value of 4,300 kcal/kg NAR, shipped in 80,000-tonne Panamax cargoes. Its nominal five-year volume is approximately 1.04 million tonnes. The coal may be loaded in Indonesia or Australia, with 80,000 tonnes required in the first contract year and 240,000 tonnes annually in each of the following four contract years. ELT11 seeks thermal coal with a minimum net calorific value of 5,700 kcal/kg NAR, shipped in 150,000-tonne Capesize cargoes. Its nominal five-year volume is approximately 1.95 million tonnes. The tender calls for 150,000 tonnes in the first contract year and 450,000 tonnes annually in each of the following four years. Eligible origins include Indonesia, Australia, the United States, Canada and South Africa. Russian-origin coal, as well as coal or entities subject to United States sanctions, is excluded from both tenders. South Korean utilities increased their reliance on coal in 2026 amid weaker nuclear generation and elevated LNG prices. Coal-fired generation rose 26.6% year on year in the first quarter, while an August heatwave also lifted electricity demand and coal-fleet utilization.

[Vietnam] The Southeast Asian flat steel market is showing signs of divergence, with coil prices in Vietnam moving upwards in line with higher offers from domestic steel mills, pushing the benchmark import HRC price up 2 USD/tonne to 527 USD/tonne CFR Vietnam. A major Vietnamese steel producer announced new monthly offers on September 3rd, lifting SS400 and SAE1006 HRC prices by 10 USD/tonne for October deliveries, setting them at 540–543 USD/tonne CFR depending on the delivery port, with a discount of roughly 10 USD/tonne for bulk buyers. Concurrently, HRC imports from Indonesia were quoted at 530 USD/tonne CFR, and Indian material was recorded at 530–535 USD/tonne CFR. However, import prices remained unattractive to domestic buyers due to a narrow price gap with local Vietnamese mills, and no transactions were recorded as market participants had just returned from a holiday. This contrasted sharply with weakness in China, where both domestic and export HRC prices fell amid sluggish market sentiment and quiet trading.