- Kanto tender sees 20,000 t of H2 sold to Vietnam
- Tight supply keeps H2 export prices supported
Japan’s August 2025 Kanto scrap export tender witnessed an m-o-m rise of JPY 172/t ($1/t), with a 20,000-t H2 lot reportedly awarded via a trader to VAS, a Vietnam-based mill at JPY 41,888/t ($285/t) FAS Japan. In comparison, the Kanto tender was concluded at JPY 41,716/t ($284/t) in July.
According to a market participant, “The shipment is scheduled for latest sailing by end-September, and the price equates to approximately $295/t FOB Japan, with an estimated freight of $30/t, bringing the CFR Vietnam cost to around $320-325/t for the buyer.”
The JPY-USD exchange rate remained largely stable (147.14/$ on 9 August versus 146.32/$ on 9 July), which softened the decline in yen terms.
Japan’s scrap market remains firm
Additionally, BigMint assessed H2 prices at JPY 41,700/t ($282/t) FOB Tokyo Bay, reflecting a w-o-w increase of JPY 1,000/t.
Japanese ferrous scrap export prices held edged up w-o-w, supported by limited domestic scrap collection and positive sentiment carried over from the Chinese market. However, trading activity remained muted ahead of the upcoming Mountain Day and Obon holiday period, which also led to reduced domestic scrap generation, sources said.
A trader commented, “Scrap collection has been challenging for some time, and a few dealers are reportedly raising their collection prices for August-September shipment contracts.”
Updates on importing markets
Vietnam: The imported scrap market remained under pressure, with prices falling up to $3/t w-o-w. Buyers were cautious due to adequate inventories and volatile billet prices. H2 offers stood at $310-315/t CFR, but bids remained below $310. US-origin bulk offers at $345/t CFR saw limited interest amid wide bid-offer gaps.
Taiwan: Ferrous scrap prices in Taiwan remained firm, supported by higher billet offers. Buying interest shifted towards Japanese scrap, as the price gap with US-origin material narrowed. US HMS 80:20 stood at $300/t CFR, while Japan H2 held steady at $308/t.
Bangladesh: Bangladesh’s imported Japanese H2 scrap prices fell by $2/t w-o-w to $340/t CFR amid weak steel demand, letter of credit (LC) issues, and poor liquidity. Offers stood at $340-345/t, while bids remained lower at $335/t. Mills avoided bulk bookings, citing limited working capital and slow construction activity.
South Korea: The scrap market remained stable amid tight supply and weak construction demand. To support domestic steelmakers, the government introduced the “K-Steel Act,” offering financial incentives and simplified regulations, according to local media reports.
Outlook
Japan’s ferrous scrap market may face short-term headwinds despite supportive fundamentals. While a stronger yen could boost buyers’ purchasing power, several market participants warned that ongoing currency volatility might curb import appetite in the near term.
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