en.Wedoany.com Reported - Asian scrap trade continues to show weakness. In the week ending July 13, Japan's H2 scrap export market remained sluggish due to subdued downstream steel demand in Southeast Asia and cautious buyer sentiment. Although the yen's depreciation enhanced the attractiveness of Japanese exporters' offers, buyers generally postponed new orders ahead of expectations of further price declines and the release of the July Kanto Tetsugen tender results. The monthly tender price ultimately fell.
Japanese domestic H2 scrap export offers to Vietnam have dropped to $370-375/ton CFR, while buyer bids remain below $365/ton CFR, creating a clear gap between buyers and sellers. While a weaker yen supports export competitiveness, weak finished steel demand in key Asian markets limits purchasing interest. The July Kanto Tetsugen tender results further reinforced bearish expectations: 15,000 tons of H2 scrap were awarded at 52,508 yen/ton (equivalent to $324/ton) FAS, down 1,998 yen/ton (about $12/ton) month-on-month. Tokyo Steel lowered H2 scrap purchase prices by 1,000 yen/ton ($6/ton) at most of its mills, with current H2 procurement levels ranging from 52,000 to 53,500 yen/ton. Tokyo Bay FOB prices fell to 52,900 yen/ton, but demand for high-quality scrap in Japan remains firm, continuing to limit export supply.
Vietnam's imported scrap procurement is also sluggish. Weak long steel demand and subdued construction activity have led steel mills to maintain only need-based purchases and delay new orders while waiting for further price corrections. Some buyers have shifted to containerized scrap, as remaining import quotas are limited after large bulk orders earlier this year. Deep-sea scrap trading has also shown no improvement. Offers for US-origin HMS 80:20 bulk cargoes are heard around $385/ton CFR, while buyers indicate acceptable prices at $370-372/ton CFR, though no actual deals have been reported.
A Vietnamese market source said that due to adverse weather, construction demand remains weak, and steel mills are only purchasing scrap for immediate needs; demand may improve later as producers begin stockpiling for September production.
