- Restocking demand expected to emerge from Vietnam
- Yen fluctuations, supplier pricing push offers higher
Japan’s H2 scrap export prices edged higher w-o-w, supported by stronger mainstream offers from suppliers and recent fluctuations in the yen.
BigMint assessed H2 at JPY 41,900/tonne (t) ($284/t) FOB Tokyo Bay, up JPY 300/t ($2/t) w-o-w.
Additionaly, Tokyo Steel raised H2 scrap prices by JPY 500/t at Okayama, effective 27 September, bringing them to JPY 40,500/t ($271/t); other plants’ rates remained unchanged.
Key market updates
Vietnam: H2 scrap offers for Vietnam were reported at $325-328/t CFR, with the most competitive price up w-o-w, while indicative bids ranged $318-320/t CFR. The slight increase in offers was attributed to recent yen fluctuations.
Vietnamese mills showed muted demand for deep-sea H2 scrap due to sufficient inventories and reduced production amid the ongoing rainy season. The gap between current offer levels and the mills’ target prices further limited buying interest, though some restocking activity is expected this week.
Bangladesh: H2 scrap in Bangladesh remained largely stable w-o-w, reflecting limited buying interest from local mills. Mills continue to rely on previously stocked material from early September, while sluggish construction activity and low finished steel orders keep restocking minimal. Although some Japanese bulk cargoes were booked last month, buyers remain cautious, balancing the need for imported H2 against prevailing weak demand and slow market activity.
Outlook
Near-term demand for Japanese H2 scrap in Vietnam is expected to remain stable to slightly positive. Mills are likely to monitor price movements closely, with restocking decisions influenced by inventory levels, seasonal production adjustments, and the relative cost advantage of H2 scrap over other deep-sea options.
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