- Taiwan scrap prices stable amid weak demand
- Tokyo Steel cuts H2 prices for 9th time in a row
Japan’s and Taiwan’s ferrous scrap markets remained subdued in the week ended 24 August, pressured by weak downstream demand and cautious mill buying. Japanese H2 scrap prices softened in Vietnam, while Tokyo Steel cut domestic H2 purchase prices. In Taiwan, imported scrap prices remained stable as sufficient inventories and cheaper domestic alternatives limited buying interest.
Weekly assessments
JapaneseH2 scrap was at $353/t CFR Vietnam, down by $2/t w-o-w.
JapaneseH2 scrap was at JPY 48,500/t ($305/t) FOB Tokyo Bay, stable w-o-w.
US-originHMS 80:20 bulk stood at $368/t CFR Vietnam, down by $2/t w-o-w.
Japan
Tokyo Steel, Japan’s largest EAF steelmaker, cut H2 scrap purchase prices by JPY 500-1,500/t ($3-6/t) across all plants, effective 22 August. The latest reduction marks the ninth consecutive cut since July, bringing H2 purchase prices to JPY 47,000-50,000/t ($296-315/t) DAP.
Despite the scrap price cuts, Tokyo Steel kept its September product list prices unchanged, following JPY 2,000-3,000/t ($13-19/t) increases introduced in July. The company expects construction activity to improve from autumn and said market prices have been gradually rising.
Tokyo Steel is also preparing to add 250,000 t/year of CRC capacity at its Okayama plant, with start-up expected in Q1 2027. Meanwhile, demand for low-carbon steel is increasing, with the company maintaining its “virtually zero” steel premium at JPY 5,900/t ($37/t).
Japan’s H2 scrap was last assessed at around JPY 48,500/t ($305/t) FOB Tokyo Bay, unchanged w-o-w.
Taiwan
Imported HMS 80:20 prices remained stable at $325/t CFR Taiwan amid weak demand and limited buying. US-origin HMS 80:20 were heard at $324-325/t CFR, while offers stood at $325-330/t and bids at $323-325/t. Toward the weekend, some bids were heard at $323/t CFR and below.
Spot liquidity remained thin as mills resisted higher prices, while Taiwanese buyers stayed cautious amid sufficient inventories and competitively priced domestic scrap. Feng Hsin kept local scrap prices unchanged at TWD 9,200/t ($289/t) but cut rebar prices by TWD 200/t to TWD 17,000/t ($534/t) amid sluggish sales. Overall, weak construction activity, rainy weather and lower mill output could continue to pressure scrap prices in the near term.
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