- Chattogram-based mill secures 20,000-t cargo
- Vietnam cautious, monitors Japan’s trends closely
Japan’s June 2025 Kanto scrap export tender remained range-bound, with bids inching down m-o-m. A 20,000-t H2 lot was awarded to a Chattogram-based mill at JPY 42,267/t ($291/t) FAS, down JPY 122/t ($1/t) m-o-m.
However, bids were largely stable m-o-m in terms of dollar value. The slight appreciation of the JPY from 148.06 in May to 145.07 in June had only a mild impact on dollar-denominated prices.
As per market feedbacks, the Kanto Tetsugen Cooperative sold a record 20,000 t of scrap (H2, FAS) in its June export tender, marking its first-ever single-lot deal of this volume.
A total of 17 bids were submitted by 15 traders, with no rejections. Total bids reached 163,400 t, the highest since Feb 2021, driven by strong interest in larger volumes. The shipment deadline is on 31 July.
According to sources, a major Bangladeshi mill secured the cargo in the recent Kanto tender through a leading Japanese trading firm, marking the first booking since the Eid holidays. Notably, Bangladeshi buyers had remained largely inactive in bulk bookings over the past two weeks.
The deal was concluded at around $345-350/t CFR Chattogram, equivalent to roughly $358-364/t CFR Chennai and Kandla, respectively. Freight differentials between Bangladesh and India could be at least $10-15/t.
Additionally, Japanese H2 export prices dropped slightly amid continued weakness in downstream demand across major markets. Domestic suppliers’ margins shrank, as sluggish rebar demand prompted a major local scrap buyer to cut prices twice.
BigMint assessed H2 scrap export offers at JPY 40,600/t ($282/t) FOB Tokyo Bay, with domestic FAS prices slipping by JPY 500/t ($3/t)to JPY 41,100/t ($285/t) w-o-w.
Market updates
Vietnam: Imported ferrous scrap prices in Vietnam edged up slightly this week, but overall buying interest remained limited, as market sentiment was cautious. Japanese H2 was assessed at $325/t CFR, up by $3/t w-o-w, though actual trading activity was muted.
Offers for Japan-origin H2 in bulk were at $325-330/t CFR, while tradable levels were slightly lower at $320-325/t CFR. A Vietnam-based trader noted that mills are largely holding back, waiting for either a more favourable exchange rate or further declines in domestic scrap prices in Japan.
Adding to the subdued tone, a Japanese supplier noted that HS offers softened to $355-360/t CFR Vietnam, while bids remained at around $340-345/t CFR. Despite slight adjustments in pricing, Vietnamese mills appeared reluctant to book, keeping a close watch on Japan’s domestic market for clearer signals.
Bangladesh: The imported scrap market in Bangladesh remained sluggish, as mills stayed cautious about fresh bookings. The higher bid at the Kanto tender was primarily driven by interest from a few specific mills, while overall demand in Bangladesh remains subdued.
The cargo mostly consists of H1 scrap (including around 30% old rebar without concrete) and other lighter materials. Except for a few major Chattogram-based mills, most Bangladeshi mills are currently not active in bulk scrap imports.
Outlook
Cautious demand from Vietnamese mills and limited bulk activity in Bangladesh are expected to keep Japanese H2 offers under pressure, with tradable levels seen around $320-325/t CFR Vietnam and $340-345/t CFR Chattogram. A notable recovery in bulk bookings will depend on FX movements, Japan’s domestic scrap trends, and regional steel demand. With May contract shipments set for 21 June- 2 July and the next Kanto auction on 9 July, the upcoming trend will be interesting to watch.
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