- Kanto tender results awaited for price direction
- Deep-sea bulk scrap prices soften slightly
East Asian ferrous scrap markets remained stable in the week ended 11 May, supported by firm Japanese domestic demand and steady export offers. Meanwhile, Vietnamese mills stayed cautious due to sufficient inventories, softer steel prices, and competitive local scrap availability, while deep-sea bulk scrap prices softened slightly amid weak buying interest.
Weekly assessments
- Japanese H2 scrap was at $398/t CFR Vietnam, stable w-o-w.
- H2 scrap was at JPY 54,400/t ($347/t) FOB Tokyo Bay, stable w-o-w.
- US-origin HMS 80:20 bulk stood at $402/t CFR Vietnam, down by $5/t w-o-w.
Japan
Japanese H2 scrap export prices remained steady during the week as market activity slowed amid the Golden Week holidays from 29 April to 6 May. No formal H2 offers to Vietnam were heard, although tradable levels were estimated around $395-400/t CFR Vietnam, largely unchanged w-o-w.
A market participant said, “Many overseas buyers adopted a wait-and-see approach ahead of fresh Japanese offers and upcoming Kanto tender results. A slightly stronger JPY also supported firmer seller sentiment during the week.”
As a result, H2 scrap at JPY 54,400/t ($348/t) FOB Tokyo Bay, unchanged w-o-w. Japanese exporters continued to resist lower bids amid stable domestic demand and relatively firm collection prices.
Vietnam
Vietnamese mills remained cautious in the imported scrap market as fluctuating rebar prices and sufficient inventories reduced buying urgency. Buyers resisted higher Japanese offers, with many preferring competitively priced local scrap over imports.
Import H2 scrap indications from Japan were heard near $395-400/t CFR Vietnam, while deep-sea US-origin HMS 80:20 bulk offers declined by $5/t w-o-w to $400-410/t CFR Vietnam. Indicative bids were heard around $395/t CFR, reflecting a continued bid-offer gap and thin spot liquidity.
Lower domestic scrap and steel prices in Vietnam pressured mill margins and reduced interest in higher-priced imports. However, ongoing infrastructure projects were expected to support near-term steel demand.
Outlook
Japanese scrap export prices are expected to remain firm, supported by stable domestic demand and limited selling pressure. However, cautious Vietnamese buying and weak downstream steel demand may continue to cap upside momentum in the coming days.
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