- Vietnam and Taiwan buying interest improves
- Weak electric-furnace production limits demand
Japan’s Kanto steel scrap market showed signs of stabilisation, with incoming volumes at key collection bases easing after recent price cuts. However, weak electric-furnace production and limited regional supply-demand tightness are keeping buyers cautious.
Totetsu reduced scrap purchase prices by JPY 500-1,500/t ($3-10/t) across its sites from 22 August and by another JPY 500/t ($3/t) at the Tahara plant from 26 August. H2 purchase prices at its two Kanto sites stood at JPY 47,000/t ($301/t), the lowest among its bases.
Despite the 22 August cuts, arrivals initially showed little change. However, incoming material has since “somewhat stabilised,” according to the company’s purchasing department, supported by shipments under the Kanto Railway Source Cooperative Association’s 20,000-t August export contract at JPY 49,086/t ($314/t). Shipments began on August 28 and are scheduled to continue through 11 September.
Japanese scrap has also become more competitive as domestic markets have weakened less sharply since July. Buying interest from Vietnam and Taiwan has improved, while further domestic price declines could encourage additional export activity.
Kanto Bay-area H2 prices were largely stable at around JPY 46,000-46,500/t ($294-298/t), while higher-grade scrap such as HS was priced at around JPY 53,000/t ($399/t). H2 prices have shown limited movement. The market is now focused on the 9 September Kanto Railway Source Cooperative Association export tender, which could provide a clearer indication of market direction.
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