- Weak JPY boosts export competitiveness
- Tokyo Steel increases scrap prices across most plants
Japan’s H2 scrap export prices climbed w-o-w, driven primarily by a weaker yen, which recently fell to a seven-month low against the US dollar.
A trader commented, “Prices increased due to supply tightness, but the main driver was the weak JPY.”
BigMint assessed H2 at JPY 42,600/t ($279/t) FOB Tokyo Bay, up JPY 700/t ($5/t) from the previous week.
Oct Kanto scrap tender
The recent October 2025 Kanto scrap tender further reflected market strength, with a 20,000-t H2 lot awarded to a Chattogram-based mill at JPY 44,316/t ($290/t) FAS, up JPY 2,346/t ($15/t) m-o-m.
Domestic scrap purchase price
Tokyo Steel revised scrap purchase prices for the second time this month, effective 10 October, increasing prices by JPY 1,000/t ($7/t) at all plants except Takamatsu. Post-revision, H2 scrap prices are:
- Tahara, Okayama, Kyushu, and Tokyo Bay satellite yard: JPY 42,000/t ($275/t)
- Nagoya: JPY 41,500/t ($271/t) at Nagoya
- Kansai and Utsunomiya: JPY 41,000/t ($268/t)
The move shows concerns over Japan’s fiscal outlook following Sanae Takaichi’s victory, as her pro-spending stance and criticism of the Bank of Japan’s rate hikes have raised fears of weaker fiscal discipline.
Outlook
Near-term demand for Japanese H2 scrap is expected to stay strong, driven by the yen’s weakness, boosting export competitiveness and tight domestic supply, although trading activity may ease during regional holidays.
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