East Asia: Japan scrap prices rise after firm Kanto tender even as Vietnam’s buying remains cautious

• Kanto tender price rises JPY 3,964/t ($25/t) m-o-m
• Higher freight costs support regional import offers

H2 scrap export prices rose in the week of 12 October, supported by higher domestic collection prices and a stronger Kanto tender. A Bangladesh mill secured 20,000 t through a Japanese trader. In Vietnam, imported offers firmed on higher freight and positive steel sentiment, while ample domestic scrap and cautious buying limited deep-sea procurement.

Weekly assessments

• Japanese H2 scrap was at $375/t CFR Vietnam, up by $3/t w-o-w.
• Japanese H2 scrap was at JPY 51,400/t ($325/t) FOB Tokyo Bay, up by JPY 900/t ($6/t) w-o-w.
• US-origin HMS 80:20 bulk stood at $397/t CFR Vietnam, up by $5/t w-o-w.

Japan

Japan’s H2 scrap export prices rose ahead of stronger domestic demand and a firm October Kanto tender. The tender settled at JPY 52,077/t FAS ($329/t), up JPY 3,964/t ($25/t) from September, marking the first sharp increase after four consecutive monthly declines.
A Chattogram-based mill secured the 20,000 t tender through a Japanese trading company, highlighting renewed Bangladeshi buying interest. Tokyo Steel also raised H2 scrap prices by JPY 500-1,000/t ($3-6/t) on 9 October, its second hike this month, taking buying prices to JPY 49,000-51,500/t ($310-325/t) DAP.

Japan-origin H2 scrap was assessed at JPY 51,400/t ($325/t) FOB Tokyo Bay, up JPY 900/t ($6/t) w-o-w, while domestic collection prices rose to JPY 47,000-48,000/t ($296-303/t) FAS. Limited offers ahead of the tender and expectations of stronger October demand supported seller sentiment.

Vietnam

The imported scrap market strengthened during the week, supported by higher overseas offers and freight costs. However, buyers remained cautious, with several mills favouring domestic material amid limited demand for deep-sea cargoes.

Indicative offers for Japanese H2 scrap were heard at $378-380/t CFR, while another offer stood at $385/t CFR. The most competitive offer remained unchanged w-o-w. Market participants had awaited the tender outcome for clearer price direction.

US-origin HMS 80:20 was offered at $400-405/t CFR Vietnam, but no bids emerged as mills held sufficient stocks and resisted high prices.

Domestic scrap buying prices rose VND 100-200/kg ($4-8/t).Favourable weather and ongoing construction supported long steel demand, with market participants expecting healthy October sales, although volumes may remain below record levels.

Outlook

The sharp rise in the October Kanto tender may strengthen Japanese suppliers’ price expectations and support export offers. In Vietnam, higher Japanese and US offers could keep prices firm, although ample domestic scrap availability and limited deep-sea buying may cap trading volumes. Positive finished-steel demand expectations could provide further regional support.