East Asia: Scrap prices rise slightly on Kanto tender, but demand remains muted
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- Kanto tender lifts exporter sentiment
- Vietnam trading slows ahead of Lunar New Year
Ferrous scrap prices in East Asia rose slightly in the week ended 16 February, supported by a firmer Kanto tender in Japan. However, regional demand remained muted, particularly in Vietnam, where mills had largely completed restocking ahead of the Lunar New Year, limiting fresh trade activity.
Weekly assessments
- Japanese H2 scrap was at $338/t CFR Vietnam, up by $3/t w-o-w.
- Japan's H2 scrap at JPY 45,600/t ($297/t) FOB Tokyo Bay, up by JPY 100/t ($1/t) w-o-w.
- US-origin HMS 80:20 bulk stood at $359/t CFR Vietnam, up by $4/t w-o-w.
Vietnam: Buying subdued ahead of Lunar New Year despite firmer offers
Vietnam's imported scrap market remained subdued ahead of the holiday period, with H2 offers at $340/t CFR and workable levels at between $332-335/t CFR, while bids hovered near $330/t; an earlier deal was reported at between $328-330/t CFR, as stable deep-sea HMS prices and wide bid-offer gaps limited fresh trade activity.
Market participants stated that most mills had largely completed restocking ahead of the Lunar New Year, limiting fresh inquiries. Another Vietnam-based mill source noted that sellers were firm due to a stronger JPY and improved export benchmarks, reducing room for downward negotiations.
In the deep-sea segment, US-origin HMS 80:20 was assessed at $355-360/t CFR, increased w-o-w, against bids near $335-340/t, keeping workable spreads wide.
Japan: Scrap export sentiment strengthens after higher Kanto tender
BigMint assessed Japan's H2 scrap at JPY 45,600/t ($297/t) FOB Tokyo Bay, up by JPY 100/t ($1/t) w-o-w, reflecting cautious upward momentum.
Japan's ferrous scrap export market turned firmer w-o-w after the Kanto February tender cleared at JPY 48,083/t ($313/t) FAS for 20,000 t of H2, up JPY 1,312/t ($9/t) m-o-m. The cargo was reported bound for Bangladesh, with traders indicating the level was largely unviable for Vietnamese mills.
The higher tender outcome lifted supplier expectations, with exporters reluctant to negotiate lower. A Japan-based trader noted that while sentiment improved, the broader spot H2 market impact may remain limited as the cargo was not directed to core Southeast Asian buyers.
Outlook
We expect export scrap prices in Japan to remain firm in the near term, underpinned by the higher Kanto benchmark and currency support. However, subdued Vietnamese buying and holiday-led slowdown may cap near-term upside.
