- Export demand to Vietnam supports price increase
- Dockside H2 prices at JPY 51,000-51,500/t ($322-325/t)
Japan Metal daily: Ferrous scrap purchase prices by electric arc furnace (EAF) mills in Japan’s Kanto region moved sharply higher, crossing the JPY 50,000/t ($316/t) mark for the first time in nearly 20 months, supported by strong export competition and tightening supply. The latest uptrend reflects both improving overseas demand and domestic efforts to secure material amid rising export parity levels.
Leading the move, Tokyo Steel raised its scrap purchase prices by JPY 1,000/t ($6/t) across all plants effective 7 April, prompting several other mills to follow suit. As a result, H2 scrap buying prices were heard in the range of JPY 49,500-51,000/t ($313-322/t), with some transactions reported as high as JPY 52,000/t ($329/t). This marks the first time since August 2024 that prices have consistently entered the JPY 50,000/t ($316/t) range.
Market participants attributed the price rise primarily to increasing export competitiveness, particularly toward Vietnam. Export deals for H2 scrap were heard at around $370/t CFR Vietnam, reflecting gradually improving overseas demand. Additionally, mills kept a close watch on the upcoming Kanto Tetsugen Cooperative Association export tender scheduled for 9 April, which further supported bullish market sentiment.
Tokyo Steel highlighted that export competition was a key driver behind the latest price hike, as mills sought to align domestic procurement prices with rising international benchmarks. Similarly, other producers adjusted prices upward to secure inflows, amid a tightening supply environment and concerns over maintaining adequate scrap arrivals.
Dockside (bay) prices for H2 scrap were reported at around JPY 51,000-51,500/t ($322-325/t), while new cut scrap prices rose to approximately JPY 56,000-56,500/t ($354-357/t). Despite the sustained upward trend, some suppliers indicated margin pressures due to rising procurement costs, though mills continued to increase prices by JPY 500-1,000/t ($3-6/t) to ensure sufficient supply.
Overall, the Japanese scrap market remains firm, supported by strong export demand, limited domestic availability, and continued competition between domestic buyers and overseas markets.
Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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