- Tokyo Steel adjusts prices thrice in Apr’25
- Vietnam buyer books 15,000 t at $297/t
Japan’s April 2025 Kanto scrap export tender recorded a m-o-m drop in bids, with the 15,000-tonne (t) H2 scrap lot awarded to a Vietnamese mill at JPY 43,288/t ($297/t) FAS. In April, the Kanto bids were down to JPY 938/t ($6/t) m-o-m from JPY 1,026/t ($7/t) seen in March.
As per market insiders, a southern Vietnam-based buyer secured the winning bid this time.
The April tender saw participation from 15 companies, with all submitting bids, totaling 118,900 t — slightly lower m-o-m but marking the fourth straight month of volumes exceeding 100,000 t.
The bids declined despite a slight strengthening of the Japanese yen from 147.6 to 145.3 against the USD.
The Cooperative’s chairman noted that a slightly stronger yen (JPY 145) influenced the price, and rates could have been JPY 1,000-1,500/t higher with a weaker yen like the previous round (JPY 147).
Gwandong Cheorwon Cooperative received a competitive second-priority offer for 15,000 t but accepted only the top bid, factoring in member inventory levels, limited working days, and the Golden Week holidays (29 Apr – 6 May).
However, due to the strong yen, the price decline, when converted to won, is expected to be somewhat limited. In USD terms, the price fell by a slight $4/t m-o-m to $297/t from $301/t FAS in March 2025.
The slight appreciation of the Japanese yen to JPY 145.3 from JPY 147.6 m-o-m, coupled with weak demand and falling billet prices in East Asia, weighed on export sentiments. Market pressure intensified as traders stayed cautious post-the Kanto tender.
BigMint’s latest weekly assessment of Japanese H2 stood at JPY 43,500/t ($298/t) FOB Tokyo Bay while domestic FAS collection prices of H2 saw a slight increase w-o-w, to JPY 41,500-42,500/t ($284-291/t).
Tokyo Steel cuts scrap prices following Kanto tender outcome
Tokyo Steel has adjusted scrap procurement prices for the third time this month across plants on 2nd, 8th and 9th April.
At Tahara and Nagoya, prices were increased twice this month (2 and 8 Apr’25) at Kyushu, once, on 9 Apr’25, price dropped by up to JPY 500/t ($3/t) effective 10 Apr’25. Post-revision, H2 stood at JPY 42,500/t ($294/t) at Kyushu.
Buyer market updates
Bangladesh: The Bangladeshi imported scrap market remained sluggish during the Eid holidays, as mills operated at low capacity due to subdued steel demand.
A market insider noted that a major Bangladeshi mill participated in the tender but couldn’t match the winning bid levels this time.
With the market now reopened, rebar sales have improved, prompting mills to raise prices by BDT 500/t.
Scrap prices held steady w-o-w amid limited activity, with Japanese H2 bulk scrap assessed at $368-372/t CFR Chattogram.
Vietnam: Vietnam’s imported scrap prices fell by $6/t w-o-w, with H2 assessed at $330/t CFR amid weak buying as suppliers shifted focus to Bangladesh. Offers dropped to $335-340/t CFR from last week’s $335-345/t, reflecting subdued demand.
HS scrap offers rose from $370/t to $375/t CFR, supported by a stronger JPY. Mills placed bids at $330-335/t CFR, but overall interest stayed low.
Taiwan: Japanese H1:H2 offers to Taiwan stood at $330/t CFR amid limited supply, with traders delaying fresh quotes post-Qingming holidays. No new H2 offers were seen recently.
Outlook
Japan’s H2 scrap market will likely remain range-bound in the near term, supported by a stronger yen and the return of key Asian buyers post-Eid. The upcoming Kanto auction on 9 May could lift market sentiment, especially amid ongoing supply tightness and renewed interest from Indian buyers for Japanese bulk scrap, which may intensify regional competition.
In a strategic move to boost export efficiency, the union has approved increasing vessel shipment volumes from 15,000 t to 20,000 t. However, full implementation will depend on consensus among all bidders and optimal market conditions.
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