- Bangladesh absorbs high-priced Japanese H2
- Tokyo Steel maintains cautious pricing stance
Japan’s Kanto scrap tender surged to a nearly three-year high in February, marking the seventh consecutive monthly increase, with prices rising by JPY 1,312/t ($8/t) m-o-m to JPY 48,167/t ($310/t) levels last seen in June 2023 (JPY 48,167/t | $310.1/t).
A 20,000-t H2 cargo was awarded to a Chattogram-based mill at JPY 48,083/t ($308/t) FAS, equivalent to $315-318/t FOB Japan and above $360/t CFR Chattogram. Notably, Bangladesh remained active in the Kanto tender for the second consecutive month.
In USD terms, the tender gained $11/t m-o-m, supported by a stronger yen, which appreciated from JPY 156.9/$ to JPY 155.3/$ between 9 Jan and 10 Feb.
Domestic scrap prices in the Kanto region increased by JPY 500/t ($3/t) after remaining stable for two consecutive months. The uptick reflects gradually improving export demand, aided by currency support and active participation from importers such as Vietnam and Bangladesh, even as broader global buying remains selective.
Despite the firm Kanto signal, Tokyo Steel did not promptly revise its scrap purchase prices, with its last adjustment implemented on 29 Jan’26. Tokyo Steel revised buying prices for the third time in January, cutting JPY 500/t ($3/t) at the Okayama plant, while keeping prices unchanged at other facilities. Revisions at the Takamatsu plant remain suspended, muting wider price transmission.
- Kyushu, Okayama: JPY 43,500/t ($280/t)
- Tahara, Nagoya, Kansai, Utsunomiya: JPY 44,000/t ($283/t)
- Tokyo Bay: JPY 44,500/t ($287/t)
Overall, Tokyo Steel’s restrained response points to a cautious, wait-and-see stance, despite rising tender benchmarks and currency-driven cost pressures in Japan’s export-linked scrap market.
Japan scrap export market
BigMint last assessed Japan’s H2 scrap at JPY 45,550/t ($294/t) FOB Tokyo Bay, rose by JPY 700/t($5/t) w-o-w, due to competitive offers and rising buying interest.
For Bangladesh, sentiment turned slightly positive, supported by lower local scrap availability, which encouraged buying and improved near-term price support. The 12 February general election is also expected to boost purchasing confidence. Japan-origin H2 scrap into Chattogram was assessed at $348/t CFR last week and is expected to rise above $355-360/t CFR, driven by bullish supplier sentiment after the Kanto tender.
In Vietnam, imported ferrous scrap prices remained firm but cautious, underpinned by JPY-led cost pressures, tight Japanese H2 supply, and steady deep-sea offers. Buying stayed restrained ahead of the Lunar New Year, with mills avoiding aggressive restocking. Post-Kanto tender, suppliers pushed offers higher on the back of strong benchmarks and currency support, although several mills said current scrap levels are increasingly unworkable, prompting some buyers to consider billets as a short-term alternative.
Outlook: Japanese H2 scrap prices are expected to stay firm, led by Bangladesh, where buying may strengthen following stable government formation and a pickup in construction activity. In contrast, Vietnamese demand is likely to remain cautious ahead of the Lunar New Year. The early-March Kanto tender will be the key price-setting indicator.
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