- Vietnamese mills prefer cheaper containerised scrap over bulk H2
- Tokyo Steel lifts domestic scrap prices across multiple facilities
Japan’s H2 scrap export prices climbed up w-o-w in JPY terms, though corresponding dollar values fell $1/tonne (t), driven by exchange rate fluctuations. The weakening JPY pushed buyers to raise bids amid tight supply conditions, and demand from Vietnam remained range-bound w-o-w.
BigMint assessed H2 scrap at JPY 43,500/t ($284/t) FOB Tokyo Bay, up JPY 650/t ($4/t) w-o-w. However, in dollar terms, prices edged down by $1/t from $285/t last week due to the yen’s depreciation.
However, market participants noted that buying appetite for H2 scrap remained limited, as Vietnamese mills continued to rely mainly on domestic scrap supplies.
As per a Japanese trader, Vietnamese mills are favouring cheaper containerised scrap over high-bulk Japanese shipments amid the current price competitiveness of the grades over limited requirements.
H2 scrap offers were at around $330/t CFR Vietnam, with the most competitive levels up by $5/t w-o-w. Another offer was heard at $335/t CFR Vietnam. Bids were also heard firmer at $320-325/t CFR Vietnam, later rising to over $325/t CFR Vietnam towards the weekend with gradual interest from a few buyers.
Domestic scrap purchase prices
Tokyo Steel revised its scrap purchase prices for the fourth time this month, effective 21 October. Prices at the Tahara, Nagoya, Kansai, Takamatsu, Utsunomiya, and Tokyo Bay facilities were raised by JPY 1,000/t ($7/t), and at Okayama by JPY 500/t. Post-revision H2 scrap prices stood at:
- Tahara, Kyushu, Okayama: JPY 43,000/t ($282/t).
- Nagoya: JPY 42,500/t ($279/t).
- Kansai, Utsunomiya: JPY 42,000/t ($276/t).
Outlook
Japanese H2 scrap prices are likely to stay firm in the short term, supported by a weaker JPY and steady overseas demand, especially from regions such as Bangladesh and Vietnam, though upside remains limited if a cautious, selective Vietnamese buying pattern continues in the coming days.
Leave a Reply