East Asia: Scrap prices decline w-o-w amid weak Vietnamese demand and cautious buying

• Wide bid-offer gaps continue to limit scrap trade
  
  
• Mills maintain comfortable inventories amid weak demand
  
  

East Asian ferrous scrap markets remained under pressure amid weak steel demand in Vietnam, falling rebar prices, and cautious procurement activity. Japanese export prices softened as buyers delayed purchases, while deep-sea scrap values declined further due to limited demand and ample inventories.

Weekly assessments

• Japanese H2 scrap was at $382/t CFR Vietnam, down by $3/t w-o-w.
  
  
• Japanese H2 scrap was at JPY 51,100/t ($316/t) FOB Tokyo Bay, down by JPY 900/t ($6/t) w-o-w.
  
  
• US-origin HMS 80:20 bulk stood at $390/t CFR Vietnam, down by 5/t w-o-w.
  
  

Japan

Japanese ferrous scrap export sentiment weakened during the week as softer demand from Vietnam pressured offer levels. H2 export offers to Vietnam were heard at $380-382/t CFR, down from around $385/t CFR previously, while some lower offers at $375-380/t CFR were also reported. However, market participants noted that the lower end of the range was not widely accepted by suppliers.

Mixed sentiment persisted among Japanese exporters. Some sellers lowered offers amid expectations of further price declines, while others remained reluctant to sell at current levels, citing stable domestic scrap prices. H2 scrap was assessed at JPY 51,100/t ($316/t) FOB Tokyo Bay, down JPY 900/t ($6/t) w-o-w.

Vietnamese buyers largely adopted a wait-and-see approach as finished steel prices continued to weaken.

Vietnam

Vietnam's import scrap market remained subdued as weak steel demand and falling rebar prices continued to weigh on buying interest. Mills maintained comfortable inventories and showed limited urgency to replenish imported scrap cargoes.

Vietnam's imported scrap market remained quiet, with buyers staying cautious amid weak steel demand. Japanese H2 offers were heard at $385/t CFR against bids of $375/t CFR, while Australia-origin HMS 80:20 was offered at $385-390/t CFR, resulting in limited deal activity.

Outlook

BigMint expects East Asian scrap markets to remain under pressure in the upcoming days as weak steel demand, falling long steel prices, and comfortable inventories continue to limit buying interest. However, relatively stable Japanese domestic scrap prices may help prevent a sharper decline in export offers.