- Weak JPY lifts Japan scrap, importers still wary
- Kanto tender dips; exporters eye Bangladesh demand
Japan’s H2 ferrous scrap export market firmed over the past week, supported by a weaker JPY against the US dollar, even as trading slowed following the July Kanto tender.
The price of H2 in dollar remains same despite change in prices due to JPY deprecitaion.
BigMint’s latest assessment placed H2 scrap at JPY 41,100/t ($280/t) FOB Tokyo Bay, up JPY 600/t ($4/t) w-o-w.
The July Kanto tender concluded on 9 July with only one successful bid at a lower JPY price compared with the prior month. Domestic FAS H2 collection prices in Japan held steady at JPY 40,500/t in early July.
Meanwhile, Tokyo Steel announced its second price adjustment for July, lowering purchase prices by JPY 500/t ($3/t) at its Utsunomiya and Tokyo Bay satellite yards. Post-revision, H2 scrap stands at JPY 40,000/t ($273/t) at Utsunomiya and JPY 40,500/t ($276/t) at Tokyo Bay, while prices at other sites remain unchanged.
Importer’s market updates
Vietnam: Vietnamese buyers stayed cautious during the week, avoiding deepsea scrap bookings and preferring smaller lots to manage market risks. After the July Kanto tender, H2 scrap offers firmed slightly to $317-320/t CFR Vietnam, while bids hovered at $310-315/t, keeping tradable levels around $315/t CFR.
A Vietnam-based trader noted the tender might briefly lift offers, but weak demand could shift cargoes toward Bangladesh. Meanwhile, US-origin HMS 80:20 deepsea offers fell to around $340/t CFR Vietnam, with bids at $330/t.
South Korea: Ferrous scrap inventories at eight major South Korean steel mills rose for the fourth consecutive week, reaching 861,000 t in mid-July as mills purchased more scrap than they consumed. Ports saw increased arrivals, with significant volumes landing at Gwangyang, Gunsan, and Incheon. Amid ongoing market weakness, Hwanyang Steel announced plans to lower scrap purchase prices by KRW 10/kg ($7/t) from 12 July 2025.
Taiwan: Feng Hsin Steel, Taiwan’s top rebar maker, held rebar and local scrap prices steady for 8-10 July, delaying its pricing meeting due to Typhoon Danas. Rebar stays at TWD 16,400/t ($565/t) EXW, and HMS 80:20 scrap at TWD 8,000/t ($275/t). Global scrap trends diverged, with US HMS stable at $295/t CFR Taiwan, while Japanese H2 scrap slipped $6/t to $305/t CFR.
Outlook
Despite a typically slower season in July, Japan’s scrap export market has found some support from currency shifts. However, sluggish activity in import markets and cautious buyer sentiment suggest that trading volumes may remain limited in the near term.
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