Japanese H2 scrap prices rise on weaker currency; US export prices rises

• Tokyo Steel raises scrap prices by JPY 500/t
• US domestic and import rebar prices remained stable

US and Japanese ferrous scrap markets remain largely stable. Japan saw H2 scrap prices rise on weaker JPY, while domestic mills stay cautious. US export prices gained on Turkiye demand, but domestic activity is steady amid tight supply.

H2 scrap prices rise 

BigMint assessed Japan’s H2 scrap at JPY 43,950/t ($281/t) FOB Tokyo Bay, up JPY 250/t ($2/t) from last week, supported by a weaker yen against the US dollar.

Offers for H2 scrap were reported at $325-328/t CFR Vietnam, while bids remained steady at $320-322/t.

In Vietnam, heavy rains, flooding, and the approach of a storm have slowed construction activity, lowering demand for imported scrap. Mills are taking a cautious approach, preferring domestic scrap over imports.

Domestic mill updates: Domestic buyers remained cautious, while demand from major export destinations, particularly in Asia, stayed subdued.

Tokyo Steel raised scrap prices by JPY 500/t, but most Kanto and Kansai mills kept rates unchanged. The hike was mainly attributed to JPY depreciation rather than stronger demand, with scrap supply still tight due to limited collection.

US export scrap prices rise as Turkiye boosts purchases

Export scrap prices edged up after a surge in US cargo sales to Turkiye, which booked recently. Market remains supply-driven, with mills cautious due to weak steel demand. Weather and potential stronger January may affect pricing. HMS exports have limited impact as US mills favor other grades.

Recent deals placed HMS 80:20 at $360-362/t CFR and shredded scrap at $380/t CFR, nudging export index levels slightly higher.

Domestic mill updates: US domestic and import rebar prices remained stable amid tight supply and scarce imports, supporting domestic demand. Recent mill price hikes held, imports stayed limited due to high tariffs, and activity is steady.

FOB assessments (US East Coast, bulk)

HMS 80:20 – $332/t, up by $7/t w-o-w.
Shredded – $352/t, up by $7/t w-o-w.

US-origin HMS 80:20, bulk – CFR assessments

Turkiye – up by $7/t w-o-w at $363/t.
Vietnam – down by $2/t w-o-w at $346/t.
Bangladesh – stable w-o-w at $353/t.

Outlook

US scrap prices are expected to stay flat in December, with cautious mill buying and softer high quality grades, while exports stay slightly firmer. Stability is likely unless January demand strengthens.

Japan’s outlook shows slight improvement with more construction enquiries, but most EAF mills are holding prices steady despite Tokyo Steel’s hike, waiting for clearer market signals.