East Asia: Scrap prices edge up w-o-w on stronger Japanese offers

• Japanese scrap prices rise on strong offers, deals
  
  
• Vietnamese buyers cautious; deep-sea offers limit upside
  
  

East Asian scrap markets strengthened in the week ended 24 April, supported by firmer Japanese export offers and fresh deals following domestic price hikes. The overall uptrend was driven by stronger domestic procurement prices in Japan, which tightened export availability and supported higher offer levels.

Weekly assessments

• Japanese H2 scrap was at $398/t CFR Vietnam, up by $3/t w-o-w.
  
  
• H2 scrap was at JPY 53,700/t ($337/t) FOB Tokyo Bay, up by JPY 900/t ($6/t) w-o-w.
  
  
• US-origin HMS 80:20 bulk stood at $408/t CFR Vietnam, up by $3/t w-o-w.
  
  

Japan: Fresh deals and tighter supply lift export prices

Strong domestic pricing, led by Tokyo Steel's hikes, continued to push export offers higher, while limited scrap generation further tightened availability. Earlier deals around $390/t CFR Vietnam anchored price direction and reinforced seller confidence. Rising prices widened the bid-offer gap as Vietnamese mills resisted higher levels. Tokyo Steel's last hikes lifted domestic scrap values and export offers, while tight availability restricted export supply. Previously concluded deals supported prevailing price levels, though competitive US-origin deep-sea cargoes continued to cap upside.

Vietnam: Cautious buying limits trade activity

Vietnamese buyers remained cautious amid elevated scrap prices, with bids heard across a wide range at $375-380/t CFR and $390-392/t CFR, and more workable levels around $385-388/t CFR. Mills were reluctant to chase higher prices, citing concerns that the market may have peaked, leading to slower booking activity. As a result, buying interest stayed limited, with participants delaying fresh deals, while the availability of alternative supplies, particularly US-origin deep-sea cargoes, further capped upside in Japanese scrap bids.

Outlook

Scrap prices are likely to remain firm in the coming days supported by tight Japanese supply and elevated domestic prices. However, cautious buying sentiment in Vietnam and the availability of relatively competitive US deep-sea cargoes may continue to limit trading activity and restrict further upside. Unless demand improves or supply conditions ease, the market is expected to move within a narrow range, with Japan continuing to set the tone for regional price direction.