- Supply pressure, high freight costs keep offers supported
- Restocking demand from Vietnam likely to emerge in Q4CY’25
Japan’s H2 scrap export prices remained largely stable, posting a slight week-on-week increase. Limited spot activity and a persistent gap between offers and bids persisted, while supply constraints and higher freight costs allowed suppliers to raise offers despite weak demand.
BigMint assessed H2 at JPY 41,600/tonne (t) ($278/t) FOB Tokyo Bay, up JPY 100/t ($1/t) w-o-w.
A market participant commented that buyers mostly adopted a wait-and-see approach this week, with little change in buying indications. There were limited updates from suppliers as Japanese sellers returned from the Autumnal Equinox Day holiday.
Key market updates
Vietnam: H2 scrap demand in Vietnam remained moderate, with Japanese material seeing limited interest. Buyers were cautious and in no hurry to secure additional cargoes, as inventories remained sufficient.
H2 scrap offers were quoted at $322-326/t CFR, with the most competitive levels unchanged w-o-w. Bids held at $315-318/t CFR or lower, as many buyers maintained a wait-and-see approach amid recent slight increases in offers and higher Japan–Vietnam freight rates.
Taiwan: Feng Hsin Steel in Taiwan held its local H2 scrap procurement price steady at TWD 7,800/t ($256/t) for the third consecutive week, as global scrap prices showed mixed trends. Japan-origin H2 scrap rose slightly to $313/t CFR Taiwan, while US HMS 80:20 slipped to $300/t, reflecting cautious market sentiment.
Outlook
Looking ahead, market sources indicated potential near-term restocking, supported by steady demand in Vietnam for the remainder of the year and H2 scrap’s price advantage over deepsea bulk cargoes.
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