- Vietnam demand dips as rainy season nears
- Korea’s scrap stock rebounds after 5-week drop
Japan’s H2 scrap export market experienced a slight increase this week, supported by the weakening Japanese yen against the US dollar.
BigMint‘s weekly assessment showed export offers rising by JPY 165/t to JPY 41,500/t ($285/t) FOB Tokyo Bay, up from JPY 41,335/t ($284/t) last week.
Importer’s market updates
Vietnam: Imported ferrous scrap prices in Vietnam saw a mild decline w-o-w, as mills showed limited buying interest amid softening offers from both Japanese and US suppliers. H2 scrap offers remained stable at around $325/t CFR, while bids hovered closer to $320/t, with tradable values slightly above this level, indicating cautious but present mill interest.
Market participants informed that Vietnamese mills are still open to procuring Japanese H2 or containerised scrap, provided prices align with their targets. However, with the onset of the rainy season, demand is expected to ease further.
A local trader informed that H2 prices face resistance, as mills increasingly favour heavier grades, prompting sellers to remain competitive to secure deals.
South Korea: Ferrous scrap inventories at major steel mills rose 2.5% w-o-w to 729,000 t, ending a five-week downtrend. The increase was supported by better import arrivals, with both central and southern regions recording modest stock gains. Inventories are now aligned with average daily consumption, signalling temporary market stabilisation.
Despite the rebound, industry participants remain cautious. Weak finished steel demand, potential production cuts, and seasonal weather disruptions could cap further recovery in scrap procurement. Meanwhile, no deep-sea HMS 80:20 offers emerged from South Korea this week, as sluggish domestic rebar sales and low mill utilisation continue to weigh on buying interest.
A trader stated that “Deep-sea scrap activity will likely remain quiet for now, amid limited mill operations.”
Taiwan: Feng Hsin Steel, Taiwan’s top rebar producer, opted to keep its rebar and local scrap procurement prices unchanged for 16-20 June, citing recent price cuts and a need to monitor further market direction. The decision comes amid falling global scrap prices and weak downstream demand, especially as frequent rainfall during the wet season continues to weigh on local construction activity.
With sluggish demand and seasonal weather disruptions limiting end-user activity, Feng Hsin sees little urgency to adjust pricing further unless market fundamentals shift.
Outlook
Looking ahead, market sources expressed a slightly bearish outlook for Japanese H2 scrap. Seasonal slowdown, coupled with shifting preferences toward heavier scrap grades, is expected to cap any near-term price increases.
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