- Stronger offers, weak JPY push up H2 tags
- Tokyo Steel raises domestic scrap prices
Japan’s H2 scrap export prices climbed up w-o-w, driven by stronger offers and fluctuations in the JPY. The weakening yen pushed buyers to raise bids amid tight supply conditions, and demand from Vietnam remained steady. BigMint assessed H2 at JPY 42,850/tonne (t) ($286/t) FOB Tokyo Bay, up JPY 250/t ($2/t) from the previous week.
Despite rising prices, some participants remained cautious, highlighting that weak domestic demand and sluggish finished steel exports could cap further gains. Political uncertainty also emerged after longtime coalition partner Kometo withdrew support, raising doubts over Sanae Takaichi’s premiership prospects.
Domestic scrap purchase prices
Tokyo Steel revised its scrap purchase prices for the third time this month, effective 17 October. Prices at the Okayama and Kyushu plants were raised by JPY 1,000/t ($7/t), while rates at other sites remained unchanged. Post-revision H2 scrap prices stood at:
- Okayama: JPY 42,500/t ($281/t)
- Kyushu: JPY 43,000/t ($284/t)
Vietnamese demand remains steady for H2 scrap as offers to Vietnam were heard at $325-330/t CFR, with the most competitive levels up $3/t w-o-w. A Vietnam-based mill source noted that the recent yen depreciation prompted the slight increase in offers, while overall demand for H2 scrap remained steady. A local trader added that H2 prices around $323-324/t could be workable, though buyers may need more time to accept these levels.
Outlook
In the near term, demand for Japanese H2 scrap is expected to remain stable. However, market sentiment may stay cautious amid domestic and political uncertainties.
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