- Tokyo Steel increases scrap purchase prices at most plants
- Stronger flat-rolled prices support higher US scrap prices
In the global scrap export market, Japan’s prices edged higher this week, supported by currency fluctuations, even as market activity remained subdued. US ferrous scrap export prices rose slightly w-o-w amid tighter supply, though trading remained cautious as participants avoided taking strong positions ahead of winter.
Japan’s scrap export prices rise w-o-w
BigMint assessed H2 scrap at JPY 43,400/tonne (t) ($283/t) FOB Tokyo Bay, up JPY 400/t ($3/t) in JPY terms from the prior week.
Tokyo Steel announced its first price revision of the month, effective 1 November, increasing scrap purchase prices by JPY 500/t ($3/t) at all plants except Kansai. Post-revision, H2 scrap stood at JPY 43,500/t ($282/t) for key plants, while Takamatsu remained the lowest at JPY 38,500/t ($250/t).
A mill-side participant said H2 offers were steady at $325-330/t CFR Vietnam, with a higher offer of $335/t earlier in the week and bids at around $320-324/t.
A market player stated that “the ongoing rainy season and approaching Typhoon Kalmaegi continued to weigh on Vietnam’s scrap demand. Despite the poor weather, buying interest for H2 scrap held firm as construction activity for key projects remained largely stable. Still, finished steel demand stayed sluggish, and limited deep-sea scrap purchases kept spot liquidity thin.”
US scrap export tags climb up w-o-w
US ferrous scrap export prices increased by $4/t w-o-w on tighter supply despite cautious demand. During early November trading, buyers and sellers mostly agreed on prices after the declines seen in October. Mills found it difficult to push for lower scrap prices amid stronger flat-rolled steel prices and concerns over winter scrap availability.
Reduced domestic mill activity weighed on demand, but higher export prices meant suppliers could send more scrap overseas, tightening domestic supply.
FOB assessments (US East Coast, bulk)
- HMS 80:20 – $327/t, up by $4/t w-o-w.
- Shredded – $347/t, up by $4/t w-o-w.
US-origin HMS 80:20, bulk – CFR assessments
- Turkiye – up by $5/t w-o-w at $356/t.
- Vietnam -up by $3/t w-o-w at $348/t.
- Bangladesh -down by $2/t w-o-w at $352/t.
Outlook
Both Japan and the US scrap markets are expected to remain range-bound in the near term. In Japan, currency volatility and subdued buying from key importers such as Vietnam and South Korea could cap upside potential. In the US, stability is likely to persist through November, though improved export demand and seasonal restocking may support a modest price rebound by December.
Leave a Reply