Japan: Scrap purchase prices rise across Kanto, Chubu amid stronger export offers

• Higher US scrap prices lift H2 offers to Vietnam post Lunar New Year
• Sluggish scrap generation, Kanto tender on 6 Mar’26 tighten supply

Japan Metal Daily: Electric furnace mills in Japan raised steel scrap purchase prices across major regions such as Kanto and Chubu, following stronger export indications and a weaker JPY. In the Kanto region, mills increased buying prices by around JPY 1,000/t ($6/t), with H2 scrap assessed near JPY 45,500-46,500/t ($290-296/t). The move followed a similar hike by Tokyo Steel across all its bases, including Utsunomiya and the Tokyo Bay satellite yard.

The price increase was largely driven by rising dollar-denominated export offers after the Lunar New Year. H2 scrap offers to Vietnam were heard around $340/t CFR, supported by stronger US scrap markets amid cold weather conditions. Meanwhile, JPY depreciation against the US dollar also strengthened export competitiveness and supported domestic pricing.

Supply conditions in the Kanto market remained relatively tight. The planned shipment of about 20,000 t by the Kanto Tetsugen Cooperative from 6 March was also cited as a factor influencing local supply dynamics. Gulf-area yard prices were heard around JPY 47,000/t, reflecting firm market sentiment.

Meanwhile, in the Chubu region, electric furnace mills also implemented an additional JPY 1,000/t increase for all scrap grades by 4 March, bringing H2 purchase prices to about JPY 43,000-46,000/t ($274-293/t). The hike was mainly aimed at narrowing the gap with higher port prices, where H2 scrap had been traded near JPY 46,500/t ($296/t) and Shindachi scrap around JPY 51,000/t ($325/t).

Some mills were reported to have offered premiums to secure new scrap supplies. However, industry sources noted that several mills had already built sufficient inventories, suggesting limited room for further price increases in the short term.

On the supply side, scrap generation linked to the automotive sector remained subdued due to slow production activity. At the same time, overseas buyers continued to seek high-grade Japanese scrap, particularly premium varieties, creating tightness in new scrap availability and supporting selective price strength in the market.

Note: This article has been published in accordance with a content exchange agreement between Japan Metal Daily and BigMint.