Japanese scrap is firming in East Asia, Kallanish notes. Export offer prices have increased in tandem with the rising domestic market in Japan.

In Japan, leading EAF operator, Tokyo Steel has raised its domestic Japanese scrap procurement prices twice this month. 

Effective 6 March, the leading Japanese EAF steelmaker will pay JPY 35,000/tonne for ($313/t) H2 grade scrap trucked to its Utsunomiya steelworks, located north of Tokyo. This is JPY 1,000/t higher since 28 February and up JPY 500/t from 2 March. The price upswing has been sharp as the mill’s H2 purchase price was previously JPY 31,500/t effective 14 February. 

Export offers of Japanese scrap to Vietnam have risen to $340-342/t cfr Vietnam, up around $4/t from last Friday. Trading and importing sources in Vietnam say that current offer prices for Japanese scrap is too high for the Vietnam market. “H2 is too high compared to the finished product prices,” a mill manager says. "Many suppliers are now waiting for the outcome of the Kanto (Japanese scrap export) tender next week," he adds.

With the current firming of the Turkish scrap market, offers of other origin scrap appeared to have dried up. Last Thursday, there were two US bulk scrap offers at $341/t cfr Vietnam HMS 1/2 80:20 basis. Market participants say they have not heard of US bulk scrap offers this week.

 A 10,000-tonne booking of Japanese H2 scrap was dealt at $332/t cfr Vietnam on 21 February. Several cargoes of EU-origin HMS 65:35 previously transacted at $330-332/t cfr Vietnam around the same time.