- Japan’s H2 scrap prices slip amid weak demand, higher freight
- Vietnam bids steady; Taiwan mills hold local scrap prices
Japan’s H2 scrap export prices edged lower w-o-w, weighed down by moderate demand, currency fluctuations, and subdued trading activity. Freight rates for October shipments were also reported higher, adding further pressure.
BigMint’s weekly assessment placed H2 at JPY 41,500/t ($280/t) FOB Tokyo Bay, down by JPY 500/t ($3/t) w-o-w.
A Japanese trader noted that while prices remain relatively stable, sentiment is weak, with several Kansai-region mills still under maintenance and local demand showing little recovery.
Key market updates
Vietnam: H2 offers to Vietnam held rangebound at $325/t CFR, with bids around $320/t and indicative levels at $317-318/t CFR in early September. Demand stayed moderate as buyers adopted a wait-and-see approach after the National Day holiday, with sentiment weighed by the view that prices had already peaked in recent weeks.
However, some mills are preparing to restock ahead of the year-end peak season, supporting higher bids. Indicative levels rose to $340-342/t CFR, with tradable values reported at $343/t CFR.
Taiwan: H2 scrap prices in Taiwan slipped w-o-w to, reflecting softer import trends. However, local mini-mills chose to keep their procurement prices for domestic scrap unchanged in order to secure steady inflows and maintain supply stability, despite the weakness in overseas markets.
Outlook
Looking ahead, H2 scrap market is likely to remain under pressure in the near term, with freight cost increases and subdued regional demand weighing on sentiment. Some seasonal restocking in Vietnam may provide temporary support, but overall trading is expected to stay cautious.
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