- Vietnamese buyers cautious amid rising offers
- Korea mills scrap inventory rise after 2 months
Japan’s H2 scrap export market remained stable, with sellers holding firm on offers amid a stronger JPY, improved Chinese sentiment, and higher Turkish scrap prices. Domestic scrap prices in Japan edged up, while port congestion saw slight relief.
Rising deep-sea scrap prices, driven by strong US steel demand, kept seaborne buyers cautious, limiting market activity.
As a result, BigMint’s weekly assessment of Japanese H2 scrap export offers held steady w-o-w at JPY 41,500/t ($276/t) FOB Tokyo Bay.
Meanwhile, domestic FAS prices for H2 scrap rose to JPY 39,500-40,500/t ($263-269/t), up from JPY 39,000/t ($259/t) in the previous week.
Other market updates
Vietnam: Vietnam’s imported scrap market saw limited activity in the week under review as buyers remained cautious amid rising offers and exchange rate fluctuations. Japanese H2 scrap offers increased to $325-330/t CFR Vietnam, with tradable levels at $320/t CFR, though liquidity remained thin, with only one deal heard at $317/t CFR.
Deep-sea scrap offers also moved higher, with US-origin cargoes at $365-370/t CFR and Australian-origin cargoes at $360-365/t CFR. Despite slightly higher bids at $345/t CFR, the bid-offer gap persisted, limiting transactions.
Meanwhile, rising domestic southern Vietnamese scrap prices prompted some mills to explore restocking options.
South Korea: South Korea’s ferrous scrap inventory at major steel mills rose 0.4% w-o-w to 611,000 t, marking the first increase in two months due to slowing squeezed margins and production cuts. Inventory declined 3.9% in the central region, with Hyundai Steel’s Incheon plant seeing a sharp drop, while the southern region’s inventory rose 3.8%, led by an 18% increase at POSCO. As the market anticipates a demand recovery in March, uncertainty persists, with scrap prices expected to fluctuate depending on steelmakers’ production plans and a potential rebound in construction activity.
Taiwan: Taiwan’s imported scrap market showed signs of stabilisation as global scrap prices levelled out, prompting mini-mills to adopt a wait-and-see approach. Feng Hsin Steel held its rebar and local scrap buying prices steady for 24-28 February, maintaining 13mm rebar at TWD 18,200/t ($555/t) exw and HMS 1&2 80:20 at TWD 9,200/t. US-origin HMS 1&2 80:20 remained unchanged at $313/t CFR Taiwan, while Japan-origin H2 scrap held firm at $320/t CFR Taiwan. Weak Chinese rebar sales and volatile sentiment added to market caution. With scrap prices flattening, Taiwanese buyers are monitoring further movements before committing to fresh purchases.
Outlook
Japanese H2 scrap export offers are expected to remain firm in the near term, supported by a stronger JPY, improved Chinese market sentiment, and stable to rising Turkish scrap prices.
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