East Asia: Japanese scrap export offers to Vietnam ease on weak demand

• Export offers to Vietnam at $374/t CFR, down $8/t w-o-w
• Vietnamese buyers delay bookings amid bearish sentiment

East Asia ferrous scrap markets remained subdued this week as weak downstream steel demand and softer global scrap sentiment continued to limit trading activity. While Japanese suppliers largely maintained export offers, buyers across Southeast Asia remained cautious, expecting further price corrections.

Weekly assessments

• Japanese H2 scrap was at $375/t CFR Vietnam, down by $7/t w-o-w.
• Japanese H2 scrap was at JPY 51,400/t ($318/t) FOB Tokyo Bay, up by JPY 300/t ($2/t) w-o-w.
• US-origin HMS 80:20 bulk stood at $383/t CFR Vietnam, down by 7/t w-o-w.

Japan market

Japan’s H2 export scrap market remained relatively firm this week despite weaker buying interest across Asia. Most H2 offers to Vietnam were heard at around $375/t CFR, while regular offer levels remained above $380/t CFR, with suppliers reluctant to accept lower prices despite recent domestic price cuts by Tokyo Steel.

A Japanese trader source said, “Vietnamese mills’ buying ideas were around $375/t CFR, but Japanese exporters remained firm, citing limited scrap generation despite softer domestic market conditions. One market source described the situation as a “tug-of-war” between weak overseas demand and constrained scrap availability in Japan.”

Price cuts in Japan’s Kyushu region had limited impact on exports, as most overseas cargoes originate from the Kanto region, where collection prices remained stable. H2 collection prices were reported at JPY 53,000-53,500/t ($328- FAS, while the FOB Tokyo Bay assessment rose by JPY 300/t w-o-w to JPY 51,400/t ($318/t), supported by a weaker yen. Although a Japan-origin H2 deal was reported at $372/t CFR Vietnam, exporters continued targeting higher prices.

Vietnam market

Vietnamese scrap demand remained weak during the week as mills continued to delay purchases amid sluggish finished steel demand and expectations of further price declines. Buyers maintained a cautious procurement strategy, widening the gap between bids and sellers’ expectations.

The deep-sea scrap market also softened, with Australian-origin HMS 80:20 offers declining to around $385/t CFR Vietnam, while tradable values were assessed near $380/t CFR. Buyers’ indications were heard at $370-375/t CFR, reflecting subdued buying interest and weak downstream steel consumption. The decline in Turkish scrap prices weighed on Asian sentiment, prompting Vietnamese buyers to seek lower offers.