- Japan export scrap gains momentum on stronger Kanto tender
- Turkish buying strengthens US scrap exports
Japanese H2 prices strengthened in the week ended 16 January on the back of a weaker Japanese yen against the US dollar and the firm outcome of the January H2 Kanto tender, while US East Coast export values rose on limited availability and renewed Turkish demand, despite cautious sentiment elsewhere.
Japan H2 scrap prices firm on weaker JPY
BigMint assessed Japan’s H2 scrap at JPY 44,800/tonne (t) ($283/t) FOB Tokyo Bay, up JPY 1,250/t ($8/t) w-o-w. January Kanto tender wnning bid was reported at JPY 46,771/t ($295/t) FOB for a 20,000 t cargo, boosting exporter confidence.
The deep-sea bulk scrap market remained largely rangebound, with a persistent bid-offer gap. US-origin HMS 80:20 offers hovered near $350/t CFR Vietnam, while bids stayed closer to $335/t CFR, limiting deal activity.
In Vietnam, H2 scrap offers were largely quoted at $320-325/t CFR, with some sellers testing $330/t CFR restocking activity for H2 in Vietnam. Post-Vietnamese New Year production schedules and supportive exchange rates are expected to lend some strength to imported scrap demand in the coming week.
US East Coast scrap prices hit multi-month highs
US ferrous scrap export prices rose sharply after a Turkish mill booked cargoes at the highest confirmed levels since March, amid tight domestic supply and firmer Turkish steel prices. Strong January domestic settlements pushed dock buying prices to multi-month highs, reinforcing bullish exporter sentiment.
FOB assessments (US East Coast, bulk)
- HMS 80:20: $350/t, up $3/t w-o-w
- Shredded: $370/t, up $3/t w-o-w
US-origin HMS 80:20, bulk – CFR assessments
- Turkiye: $376/t, up $5/t w-o-w
- Vietnam: $342/t, down $2/t w-o-w
- Bangladesh: $365/t, up $3/t w-o-w
Outlook
US scrap prices are expected to remain firm on tight domestic supply and steady Turkish demand, while Japanese H2 prices should stay supported by yen weakness and higher tender benchmarks, even as cautious buying and wide deep-sea bid-offer gaps persist.
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