Japan: H2 scrap export offers remain range-bound w-o-w

• Cautious demand, stronger yen keep trading subdued
• Tokyo Steel lifts scrap buying prices for 2nd time in Sep

Japan’s H2 scrap export prices remained range-bound w-o-w, with market activity subdued amid a stronger yen and moderate overseas demand, as buyers maintained a cautious stance.

BigMint assessed H2 at JPY 41,500/tonne (t) ($281/t) FOB Tokyo Bay, down JPY 100/t ($1/t) w-o-w.

A trader stated, “Despite a stronger yen, the Japanese scrap market remained largely unchanged this week. Domestic demand is still sluggish, though there is cautious optimism with the summer ending.”

Tokyo Steel highlighted that both domestic and overseas markets are in a wait-and-watch mode, weighing on steel shipments. The company raised scrap prices for the second time this month, lifting levels in Okayama, Kansai, and Kyushu to JPY 40,000/t, JPY 39,500/t, and JPY 40,500/t respectively, each up by JPY 500/t.

Key market updates

Vietnam: H2 scrap offers in Vietnam held steady at $322-325/t CFR, with the most competitive offers edging up w-o-w. Demand stayed moderate, as some buyers adopted a wait-and-watch stance. A Vietnam-based mill noted they may resume purchasing next week.

The slight uptick in offers was linked to higher freights between Japan and Vietnam. However, demand for deep-sea cargoes remained muted, weighed down by Vietnam’s sluggish rebar market, keeping overall activity subdued.

Taiwan: Feng Hsin Steel, Taiwan’s largest rebar producer, kept its rebar and scrap prices unchanged for 15-19 September, reflecting weak local demand and cautious sentiment. Japan-origin H2 scrap was steady at $310/t CFR Taiwan, with mills opting to take on a wait-and-watch stance as sluggish rebar demand and China’s weak steel market limited buying interest.

Outlook

Looking ahead, Japan’s scrap market is expected to remain stable in the near term, with overseas buyers cautious and domestic demand slow to recover. Any significant upward movement will likely depend on stronger regional steel demand and clearer signals from key export markets.