- H2 scrap steady as Obon limits fresh offers
- Vietnamese buyers cautious amid ample supplies
Japan’s H2 scrap export prices held stable in the beginning of August as a balanced supply-demand trend kept the market steady despite muted trading activity. Steady regional demand and limited fresh offers ahead of the Obon holiday offset pressure from weaker buying interest in Vietnam.
Offers to Vietnam were reported at around $315/t CFR, while bids surfaced near $310/t CFR or lower, with no firm trades confirmed.
BigMint’s weekly assessment kept H2 unchanged w-o-w at JPY 40,700/t ($271/t) FOB Tokyo Bay.
Import market updates
Vietnam: Vietnam’s imported ferrous scrap market saw prices ease by up to $3/t w-o-w, as mills with sufficient inventories showed limited buying interest. Softer demand from Taiwan, South Korea, and Bangladesh led to increased supply flows into Vietnam, further pressuring offers.
Meanwhile, US-origin deep-sea cargoes were offered at $345/t CFR, but bids trailed at $325-330/t, leaving the bulk market stagnant amid a wide price gap.
Market participants noted that with September shipments largely finalised and the Obon holiday set to slow Japanese scrap collection, some suppliers are holding back on new offers. Traders added that if prices align, major Vietnamese mills are expected to step in for deep-sea bulk, as demand remains steady and volumes are not a concern.
Taiwan: Imported US-origin HMS 80:20 prices remained stable at $298/t CFR Taiwan, while Japan-origin H2 inched up $3/t to $308/t CFR, supported by firmer Chinese rebar sentiment and steady infrastructure-driven demand.
Taiwan’s Feng Hsin Steel lifted rebar list prices by TWD 300/t ($10/t) to TWD 16,500/t ($555/t) Exw for 28 July-August, its first hike since May. Local scrap procurement stayed unchanged at TWD 7,800/t ($282/t).
Outlook
Market participants expect a slightly bullish trend for H2 scrap in the near term, citing China’s rising steel prices as a key driver. A Vietnam-based mill source commented, “H2 prices could improve soon as China’s market is pushing values higher.”
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