East Asia: Japanese scrap offers rise as Vietnamese buyers resist higher prices

• Tokyo Steel raises buying prices by JPY 1,000/t at two locations
• Higher Japanese offers meet cautious buying interest in Vietnam

H2 scrap export prices strengthened during the week ended 19 October, supported by firm domestic mill demand, higher Kanto Tetsugen tender results and fresh buying price increases from Tokyo Steel. However, Vietnamese buyers resisted higher import offers amid adequate inventories and subdued deep-sea demand, limiting fresh bookings.

Weekly assessments

• Japanese H2 scrap was assessed at $377/t CFR Vietnam, up $2/t w-o-w.
• Japanese H2 scrap stood at JPY 52,200/t ($330/t) FOB Tokyo Bay, up JPY 800/t ($5/t) w-o-w.
• US-origin HMS 80:20 bulk was assessed at $395/t CFR Vietnam, down $2/t w-o-w.

Japan

H2 ferrous scrap export prices increased during the week, supported by stronger Kanto Tetsugen tender results and domestic buying price hikes. However, elevated export offers limited overseas buying interest, prompting some suppliers to withhold fresh quotations while awaiting further price gains.

Japanese H2 scrap at JPY 52,200/t ($330/t) FOB Tokyo Bay on 16 October, up JPY 800/t w-o-w. Export offers stood at JPY 52,000-53,000/t FOB Japan, while free-alongside-ship (FAS) collection prices were reported at JPY 48,800-50,000/t.

Tokyo Steel revised scrap buying prices at its Utsunomiya plant and Tokyo Bay region satellite yard by JPY 1,000/t ($6/t) on 19 October. Prices at the remaining six locations were unchanged at JPY 51,500-52,500/t.

A Japan-based trader said domestic sentiment remained firm despite weakening overseas markets, as mills continued buying at higher prices. Strong scrap generation allowed collectors to delay sales, with some suppliers expected to resume offers within one to two weeks.

Vietnam

Vietnamese buyers remained cautious as Japanese H2 scrap offers rose following the Kanto Tetsugen tender and Tokyo Steel’s price increases. Offers were reported at $380-385/t CFR Vietnam, with a higher indication at $395/t CFR. Buyers resisted these levels and preferred to wait for more competitive prices before booking fresh cargoes.

Indicative bids were heard at $375/t CFR and around $380/t CFR, while reported bids of $380-385/t CIF remained unverified at the market close. A Vietnam-based mill source said prompt-shipment offers were available, suggesting some Japanese yards might have sufficient inventories and limited urgency to sell.

Deep-sea scrap market weakened amid subdued mill demand and ample inventories. A Vietnam-based trader said mills were in no hurry to secure fresh cargoes because existing inventories remained adequate and competitively priced.

Outlook

Japanese export offers may remain supported by firm domestic mill demand and strong tender results, although subdued overseas buying could delay fresh bookings. Vietnamese buyers are likely to remain selective until offers ease or inventories decline. Near-term trading will depend on whether Japanese sellers adjust price expectations to align with demand across key Asian markets.