Data: SHFE, DCE market movement (Apr 17)

[SMM Steel] Steel exporters in Asia and Turkey are increasingly shifting from CFR to FOB offers as the Iran-related conflict drives up freight costs and disrupts shipping. The Strait of Hormuz remains effectively closed, while freight from India to Europe has risen to ~$80/t (vs. $50–60/t previously). Indian mills have suspended or converted shipments to FOB, with some March cargoes delayed. Meanwhile, limited imports have pushed up flat steel prices in the GCC, with supply disruptions affecting availability.

【SMM Steel】Japan's HRP shipments fell 0.2% m-o-m to 641,568t in Feb 2026 but rose 8.5% y-o-y. 76.5% went to domestic market, 23.5% exported. Production was 634,528t. HRS shipments fell 0.7% m-o-m to 1.13Mt, down 7.1% y-o-y. 27.7% domestic, 72.3% exported. Production was 1.08Mt, down 14.5% m-o-m but up 1.5% y-o-y.

【SMM Steel】Nippon Steel started converting BF-based production to EAF at its Kyushu Works (Yawata), a major decarbonization step. The project aims to establish the world's first integrated mass production system for high-grade steel using a large-scale EAF. Kyushu will install a ~2 Mt/y crude steel EAF with secondary refining/CC. Construction began; ops start H2 FY2029. Investment: JPY630.2bn. Setouchi Works (Hirohata) will install a 500,000 tonnes/y EAF; Yamaguchi Works (Shunan) a 400,000 tonnes/y EAF.