Japan’s Export Scrap Steel Prices Fall for Third Consecutive Week
As of the week ending July 22, Japan’s export prices for scrap steel posted a third straight weekly decline, weighed down by sluggish domestic demand and muted purchasing interest from overseas buyers.
Domestic Market
Most electric arc furnace steelmakers have entered summer maintenance shutdowns, curbing domestic scrap steel consumption. Temperatures in Tokyo and central Japan surged above 40°C, and the extreme heat is expected to further dampen outdoor construction work and drag down downstream demand for finished steel products. Tokyo Steel cut its domestic scrap steel purchase prices twice within a single week; following the latest adjustments, purchase prices at most of its plants stand at approximately 51,500–52,500 Japanese yen per metric ton.
Export Market
Purchasing appetite across Asia remains weak. The rainy season in Vietnam continues to hamper construction activity, and soft demand for finished steel leaves local steel mills with little incentive to restock inventories. Escalating tensions between the US and Iran have driven up oil prices, stoking overseas buyers’ fears of further freight cost hikes. The Japanese yen slumped to below 163 against the US dollar, hitting a near 40-year low, yet cautious buyer sentiment and feeble demand continue to limit pricing power for sellers.
Weekly Benchmark Export Price Assessments
- Grade H2 scrap steel (FOB major Japanese ports): 51,500–52,500 yen/ton, down 1,000 yen week-on-week
- Shredded scrap: 54,000–55,000 yen/ton, down 1,000 yen week-on-week
- Heavy scrap and new cut steel scrap: 55,000–56,000 yen/ton, down 1,000 yen week-on-week
FOB asking prices for Grade H2 scrap steel stand at 52,500–53,500 yen/ton, while buyer bids have fallen to 51,500–52,000 yen/ton, with viable transaction levels hovering around 51,000–52,500 yen/ton.
CFR quotations for shredded scrap to Vietnam are roughly USD 378 per metric ton, and heavy scrap stands at around USD 383 per metric ton. Buyers keep pushing prices lower, with bids for heavy scrap and new cut scrap falling to 54,000–55,000 yen/ton.