Japan’s Import‑Scrap Steel Market Prices Rise Steadily

As of the week ending August 26, Japan’s scrap‑steel export prices moved within a narrow range. Despite sluggish demand in major export markets, sellers kept firm offers. On the domestic market, Tokyo Steel cut its scrap‑steel purchase prices by 500‑1,500 yen per tonne at all mills on August 22, followed by an additional 500‑yen‑per‑tonne cut at its Tahara mill on August 26. After adjustments, purchase prices stood at roughly 47,000‑49,500 yen per tonne. Other steelmakers also reduced prices by around 1,000 yen per tonne, driven by weak finished‑steel demand and sufficient inventories. For the week, FOB prices for H2 scrap at major Japanese ports were assessed at 48,500‑49,500 yen per tonne, unchanged week‑on‑week; shredded scrap was assessed at 52,000‑53,000 yen per tonne, up 500 yen per tonne; heavy‑melting and new‑cut scrap was assessed at 53,500‑55,000 yen per tonne, up 500 yen per tonne.

FOB offers for H2 scrap were concentrated at 49,500‑51,000 yen per tonne, rising by 500 yen per tonne. Vietnamese buyers bid 48,000‑49,000 yen per tonne, down 500 yen per tonne week‑on‑week. Towards the end of last week, Vietnamese traders were reported to have bought around 8,000 tonnes of H2 scrap at USD 355 per tonne CFR, equivalent to about 49,500 yen per tonne FOB. For high‑grade scrap, offers for shredded scrap stood at 52,000‑53,500 yen per tonne against bids of 51,000‑52,500 yen per tonne, with a tradable range of 52,000‑53,000 yen per tonne. Offers for heavy‑melting and new‑cut scrap were 55,000‑56,000 yen per tonne versus bids of 53,000‑53,500 yen per tonne, and the tradable range was 53,500‑55,000 yen per tonne.

Japan’s scrap‑steel exports in July fell 12.9% month‑on‑month to 513,700 tonnes, marking the third consecutive monthly drop, and were down 16.6% year‑on‑year. Vietnam remained the top export destination, yet shipments tumbled nearly 40% month‑on‑month to 156,300 tonnes, a 35% year‑on‑year decline. Exports to South Korea dropped 25.6% month‑on‑month to 104,200 tonnes (‑18.8% YoY), while shipments to Bangladesh nearly doubled month‑on‑month to 187,600 tonnes.