East Asia: Japanese H2 scrap prices edge up w-o-w amid vessel constraints, higher freights

• Vietnamese buyers cautious amid freight and supply risks
• Tokyo Steel raises domestic scrap purchase prices

East Asian scrap markets strengthened during the week end 23 March, supported by firmer Japanese export offers and limited availability of cargoes due to vessel constraints. Rising freight risks continued to support higher offer levels, although deal activity remained limited as suppliers struggled to secure vessels and buyers stayed cautious.

Weekly assessments

• Japanese H2 scrap was at $363/t CFR Vietnam, up by $7/t w-o-w.
• H2 scrap was at JPY 50,050/t ($314/t) FOB Tokyo Bay, up by JPY 550/t ($3/t) w-o-w.
• US-origin HMS 80:20 bulk stood at $386/t CFR Vietnam, up by $10/t w-o-w.

Japan: Export scrap prices rise on firm offers

Japanese ferrous scrap export prices edged higher during the week amid limited offer availability and vessel-related concerns. H2 offers to Vietnam were heard around $360-365/t CFR, up about $5/t w-o-w, while bids were reported at $358-360/t CFR.

H2 export prices were assessed at JPY 50,050/t ($314/t) FOB Tokyo Bay, up JPY 550/t ($3/t) w-o-w, supported by firmer offers and tight vessel availability.

Domestic sentiment also strengthened after Tokyo Steel raised scrap purchase prices on 20 March, increasing bids by JPY 1,000/t ($6/t) at most plants and JPY 500/t ($3/t) at Utsunomiya and Tokyo Bay, reflecting stronger export sentiment and higher freight costs, lifting domestic H2 collection prices were heard at JPY 49,000/t ($307/t) FAS.

Vietnam: Limited offers amid freight uncertainty

Imported scrap market remained cautious during the week as vessel shortages and freight risks limited formal offers. Market participants reported some suppliers had scrap available for sale, but transactions remained limited due to difficulties in securing freight.

Another mill based participant commented, “It is difficult to fix a vessel right now as freight risks are very high, so suppliers prefer to secure the vessel first before making firm offers.”

In the deep-sea segment, HMS 80:20 was assessed at $370-372/t CFR East Asia, up $10/t w-o-w. Open-origin offers were heard around $375/t CFR Vietnam, while Australian-origin offers were indicated near $390/t CFR and US-origin cargoes at $375-390/t CFR. Rising freight rates continued to support higher offer levels.

Outlook

Japanese export scrap prices are expected to remain firm in the near term due to tight supply and vessel constraints. In Vietnam, buying activity may stay cautious as mills monitor freight developments and inventory levels, although limited offer availability could continue to support prices.