East Asia: Japanese H2 scrap prices rise w-o-w on tight supply, higher offers

• Tight supply and higher offers support market
• Deep-sea scrap prices move up w-o-w

East Asian scrap markets strengthened on 6 April, supported by higher Japanese export offers and limited availability. Supply tightened following recent domestic price hikes by Tokyo Steel and ongoing vessel constraints, while freight rates remained firm. However, buying interest in Vietnam stayed cautious, with mills adopting a wait-and-see approach despite rising finished steel prices.

Weekly assessments

• Japanese H2 scrap was at $385/t CFR Vietnam, up by $8/t w-o-w.
• H2 scrap was at JPY 51,200/t ($321/t) FOB Tokyo Bay, up by JPY 400/t ($3/t) w-o-w.
• US-origin HMS 80:20 bulk stood at $400/t CFR Vietnam, up by $7/t w-o-w.

Japan: Export prices rise amid limited offers

H2 export prices increased further, reaching over 20-month high, driven by higher domestic procurement prices after Tokyo Steel raised purchase rates effective 6 April. Limited offers were heard in the market, as suppliers held back cargoes in anticipation of further price gains, along with continued challenges in securing vessels.

H2 scrap was assessed at JPY 51,200/t ($323/t) FOB Tokyo Bay, up JPY 400/t ($3/t) w-o-w, Offers to Vietnam were heard higher at around $385/t CFR, compared to earlier levels of $373-375/t CFR prior to the latest price hike.

Vietnam: Cautious buying amid elevated offers

Vietnamese mills largely remained on the sidelines, with bids at around $375-377/t CFR. Market participants indicated that while suppliers could accept $380-382/t CFR, mills refrained from bookings, focusing on domestic scrap and waiting for clearer market direction.

Deep-sea bulk scrap prices edged higher, with HMS 80:20 at $382-385/t CFR East Asia, up $5-8/t w-o-w. US-origin cargoes were offered at around $400/t CFR Vietnam, though buying interest remained limited due to elevated offer levels and cautious sentiment.

Outlook

Japanese export prices are expected to remain firm amid tight supply and vessel constraints. In Vietnam, cautious buying may persist, but limited offer availability and firm freight rates are likely to keep prices supported.