East Asia: Scrap prices remain stable w-o-w amid cautious buying, firm offers

• Japanese domestic demand supports export offers
  
  
• Vietnamese mills cautious amid high scrap prices
  
  

East Asian ferrous scrap markets remained largely stable in the week ended 4 May, supported by firm Japanese export offers and resilient domestic demand in Japan. Limited selling interest ahead of the Showa Day holiday and steady domestic collection prices helped maintain exporter confidence. Meanwhile, stable deep-sea bulk scrap prices and cautious buying from Vietnamese mills kept the regional market balanced, with limited upside in the absence of stronger downstream steel demand.

Weekly assessments

• Japanese H2 scrap was at $398/t CFR Vietnam, stable w-o-w.
  
  
• H2 scrap was at JPY 54,400/t ($347/t) FOB Tokyo Bay, up by JPY 700/t ($4/t) w-o-w.
  
  
• US-origin HMS 80:20 bulk stood at $407/t CFR Vietnam, stable w-o-w.
  
  

Japan

Japanese scrap export sentiment remained strong during the week as suppliers held offers steady to higher, supported by stronger domestic demand and limited urgency to sell overseas before the holiday period. H2 export offers to Vietnam were heard at $398-400/t CFR, reflecting firmer seller expectations.

Stable H2 FAS collection prices at JPY 52,500-54,000/t ($335-344/t) further reinforced confidence in the domestic market. As a result, H2 scrap at JPY 54,400/t ($347/t) FOB Tokyo Bay, up JPY 700/t ($4/t) w-o-w. Tight supply conditions and stronger local demand continued to underpin Japanese exporters' resistance to lower bids.

Vietnam

Vietnamese mills remained cautious, limiting H2 scrap purchases as high prices weighed on buying interest. Most mills were already covered for June shipments and showed little urgency due to holidays. Bids were heard below $390/t CFR, with workable levels near $395/t, while buyers largely targeted sub-$390/t. Stable downstream rebar prices further reduced willingness to accept higher scrap offers.

Meanwhile, the deep-sea bulk scrap market strengthened following fresh US-origin deals. Offers were heard at $410/t CFR, with bids near $405/t, reflecting firm sentiment and steady Asian buying interest.

Outlook

Japanese scrap prices are likely to stay firm, supported by strong domestic demand and tight supply. However, cautious Vietnamese buying and weak downstream demand may limit upside, keeping the market range-bound in the near term.