- Wide bid-offer gaps restrict H2 trade despite improving demand
- Weather-related supply crunch, stronger euro support US prices
Japan’s scrap prices strengthened in the week ending 23 January 2026 on positive sentiment ahead of the Lunar New Year, supported by firm offers and improving Vietnamese demand despite currency challenges. However, deep-sea trade remained limited due to wide bid-offer gaps.
Meanwhile, US scrap prices remained stable, backed by strong seller sentiment, weather-related supply constraints, and steady export indications.
Japan scrap prices firm up on positive sentiment ahead of Lunar New Year
BigMint assessed Japan’s H2 scrap at JPY 45,200/tonne (t) ($285/t) FOB Tokyo Bay, up JPY 400/t ($3/t) w-o-w.
H2 ferrous scrap export prices rose, supported by steady offers and bullish expectations ahead of the Lunar New Year. H2 scrap offers increased by around $5/t w-o-w to $325-330/t in Vietnam, a key buyer, while bids were heard near $322/t CFR and tradable levels at $324-325/t.
Although buying interest improved in Vietnam, unfavourable exchange rates limited deal activity, as sellers and buyers struggled to agree on workable prices. However, scrap demand in Vietnam is expected to strengthen further, with some mills planning to rebuild inventories in anticipation of possible price increases following the Lunar New Year holiday.
The deep-sea bulk scrap market stayed stable amid thin spot liquidity and a wide bid-offer gap. US-origin HMS 80:20 was offered at $350/t CFR Vietnam, while bids remained around $335/t, restricting trade volumes.
US scrap prices steady on firm seller sentiment
In the US, deal activity remained subdued early in the week as several sellers were absent due to a federal holiday. Prices remained stable, as sellers refused to reduce offers. Tradable values for US and premium-origin HMS 80:20 ranged between $375-380/t CFR, with sellers maintaining optimistic price expectations near $380/t.
Values later clustered around $376-377/t CFR, supported by weather-related supply constraints and a stronger euro. A Marmara-based mill booked a US-origin cargo, normalised to $376/t CFR, while subsequent indications remained firm at $376-379/t CFR.
FOB assessments (US East Coast, bulk)
- HMS 80:20: $350/t, stable w-o-w
- Shredded: $370/t, stable w-o-w
US-origin HMS 80:20, bulk – CFR assessments
- Turkiye: $376/t, stable w-o-w
- Vietnam: $340/t, down $2/t w-o-w
- Bangladesh: $367/t, up $2/t w-o-w
Outlook
Japan’s scrap prices are likely to remain firm, supported by steady domestic demand and cautious supply ahead of seasonal restocking. In the US, prices may stay supported by high collection costs and weather disruptions, though limited export demand could cap further upside.
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