Japan: Kanto scrap body ships record 20,000 t to Bangladesh as local demand slows

• EAF mills cut bids amid summer output curbs
• Larger export parcel sizes expected in future

SteelDaily: Japan’s Kanto Iron Source Cooperative Association has begun loading its largest-ever single scrap export cargo of 20,000 tonnes (t), bound for Bangladesh. The shipment, awarded in the June Kanto tender, reflects a strategic shift toward more distant markets as Japanese suppliers seek alternate geographies to offset weakening domestic demand, driven by production cuts at electric arc furnace (EAF) mills.

Loading operations commenced on 4 July at Tokyo’s Odaiba No. 13 berth, employing specialised equipment such as FUCHS long-arm grabs. The vessel, GOLDEN ATLANTIC-172 meters long with a deadweight capacity of 28,599 t, is scheduled to complete loading by 19 July.

Strategic shift toward distant markets

Previously, the association’s largest single shipment stood at 17,000 t in October 2020. This new 20,000-t cargo aims to capture freight cost efficiencies as Japanese exporters increasingly target markets like Bangladesh and India, where scrap demand remains stable despite global steel market volatility.

The move highlights Japanese recyclers’ growing reliance on export markets amid a slowdown in domestic scrap consumption. Industry participants expect that larger parcel sizes may become more common in future tenders as exporters seek economies of scale.

Meanwhile, steel scrap purchase prices in Japan’s Chubu region declined further, with electric furnace mills lowering bids by an additional JPY 500/t ($3/t)-the second price cut this month. Tokyo Steel’s Tahara plant initiated reductions in late June, followed by other mills, including Totetsu Tahara and Daido Special Steel’s Chita plant.

Demand has softened as several furnaces shut for maintenance and upgrades through August, delaying any near-term recovery in domestic scrap consumption. Subdued export interest is also contributing to cautious sentiment in the market.

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