BigMint is a Market Intelligence and Price Reporting firm that caters to the data and analytics requirements of businesses in the commodities sector. It publishes real time prices and information, which is impartial, independent and reliable, sourced from all industry interfaces – sellers, buyers, agents and traders. This data is filtered and passed through very stringent, calculative assessments before final prices are derived, thereby giving our clients accurate pricing.

Go to List

Japan: H2 scrap export prices rise by $3/t w-o-w; market remains quiet amid holidays

...

Melting Scrap

BigMint Bureau

45 Reads

31 Jan 2025, 18:01 IST

Japan: H2 scrap export prices rise by $3/t w-o-w; market remains quiet amid holidays

Buyers stay on sidelines, await price clarity

Tokyo Steel cuts scrap procurement prices

Japan's ferrous scrap export prices saw a slight uptick, but market activity remained quiet due to the Lunar New Year holidays starting on 29 January 2025. According to BigMint's latest assessment, Japanese H2 scrap export offers stood at JPY 42,000/tonne (t) ($271/t) FOB Tokyo Bay, up by $3/t w-o-w.

A Japan-based trader commented, "No seaborne offers were heard during the holidays," as many market participants stayed away for the festivities. No bids or offers were heard, as buyers awaited post-holiday price clarity.

Seaborne H2 activity was slow this week, as most buyers reported having adequate inventory following restocking efforts prior to the holidays.

Domestic FAS collection prices for the H2 grade were stable, at JPY 38,000-39,000/t ($246-252/t). A market participant stated, "FAS collection prices are range-bound, amid limited seaborne scrap activity during the Lunar New Year and Tet holiday period. Additionally, there have been no further changes in Utsunomiya's scrap prices."

Tokyo Steel, Japan's largest EAF steelmaker, cut its scrap purchase prices for the first time this month after more than a month of stability.

Prices dropped by JPY 500/t ($3/t) at Nagoya and JPY 1,000/t ($6/t) at Utsunomiya. The new H2 prices are JPY 41,500/t ($268/t) in Okayama, JPY 41,000/t ($265/t) in Tahara, JPY 40,500/t ($262/t)in Kansai and Kyushu, JPY 40,000/t ($258/t) in Utsunomiya and Takamatsu, and JPY 39,500/t ($355/t) in Nagoya.

A mill source said that the price cut in Tahara was due to increased scrap supply after the Chubu Steel Plate explosion, while Okayama's tags were adjusted downward from previously high levels. Meanwhile, amid slowing seaborne scrap trade during the Lunar New Year and Tet holidays, Utsunomiya's tags remained stable, with H2 FAS collection prices at JPY 38,000-39,000/t ($245-252/t) as of mid-week, according to sources.

Buyer market update

The absence of trading activity was a consequence of regional holidays, with markets such as Taiwan, South Korea, and Vietnam mostly inactive. Many traders and buyers continued to monitor the situation from the sidelines, waiting for a clearer price direction once the holidays ended and the market resumed in early February. As a result, there was a general sense of caution, with many looking for more stability in pricing before making moves.

Deep-sea scrap prices for South Korea remained stable towards the weekend amid thin liquidity, with HMS (80:20) at $340-345/t CFR East Asia (Dangjin basis).

Outlook

The market will remain muted till participants return from the holidays. Presently, the outlook remains mixed, with potential US and Chinese policy developments expected to exert significant influence.