- Tokyo Steel hike lifts domestic sentiment
- Freight rate concerns tighten export offers
East Asian scrap markets firmed in the week ended 9 March, supported by limited export offers from Japan and expectations of higher freight rates amid ongoing Middle East tensions. Supplier sentiment strengthened, though buying activity in Vietnam remained cautious.
Weekly assessments
- Japanese H2 scrap was at $345/t CFR Vietnam, up by $3/t w-o-w.
- Japan’s H2 scrap at JPY 47,500/t ($300/t) FOB Tokyo Bay, up by JPY 1,000/t ($6/t) w-o-w.
- US-origin HMS 80:20 bulk stood at $367/t CFR Vietnam, up by $5/t w-o-w.
Japan: H2 prices rise on export demand and Tokyo Steel hike
BigMint assessed Japan’s H2 scrap at JPY 47,500/t ($300/t) FOB Tokyo Bay on 6 March, up JPY 1,000/t w-o-w, supported by limited offers and expectations of higher near-term freight rates. Domestic H2 FAS (Free Alongside Ship) collection prices also moved higher to around JPY 46,500/t during the week.
The increase followed Tokyo Steel’s scrap purchase price hike of JPY 1,000/t ($6/t) across all plants recently, with H2 prices for Tahara, Okayama, Kyushu, and Utsunomiya set at JPY 46,000/t.
According to market participant, “Export offers to Vietnam were heard around $345-350/t CFR, while bids were indicated near $335-340/t CFR as buyers adopted a wait-and-see approach amid freight and geopolitical uncertainties. Meanwhile, containerized HMS 80:20 offers increased by about $10/t to $320-330/t.”
A market participant commented, “The 20,000 t scrap cargo under the February contract (winning bid: JPY 48,083/t ($303/t)) began loading on 7 March after a one-day delay. The next export tender is scheduled for 11 March.”
Vietnam: Buyers cautious amid freight uncertainty
Vietnam’s imported scrap market remained cautious, with limited offers available as suppliers monitored potential freight rate increases.
US-origin deep-sea offers were heard at $365-370/t CFR Vietnam, up about $5/t w-o-w, while Australian cargoes were indicated at $360-365/t CFR.
Market participants noted that improving prices in alternative destinations such as Bangladesh also limited offer availability to Vietnam, with HMS 80:20 CFR East Asia at $351-352/t up $1/t w-o-w.
Outlook
Japanese export prices are expected to remain firm in the near term, supported by stronger domestic pricing and freight rate uncertainties. However, Vietnam’s buying activity may remain cautious until freight trends and geopolitical developments become clearer.
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