Japan Scrap Tender Rises Amid Weak Yen and Market Dynamics
The January Japanese scrap tender surprised the market with higher-than-expected prices.
Kanto Tetsugen awarded 20,000t of H2 scrap at ¥46,771/t fas, up ¥1,083/t from December.
The fob equivalent stands at $303.84/t, reflecting stronger demand and a weaker yen.
Bangladeshi mills re-entered the market after months of inactivity.
Renewed restocking demand follows a sluggish steel market and political uncertainty ahead of national elections.
As a result, Japanese scrap prices gained momentum, defying analysts’ prior expectations.
Market Implications of the Japan Scrap Tender
The Japan scrap tender highlights supply and pricing pressures in the global market.
Vietnamese mills previously bid $320–323/t cfr, signaling regional competition for quality H2 scrap.
Meanwhile, US west coast suppliers divert tonnages to Turkey due to rising Turkish market prices.
Bangladeshi mills may pay premiums to secure Japanese scrap amid rising US domestic prices.
Traders expect Vietnam and Taiwan buyers to monitor this trend and possibly increase bids.
Overall, the tender underscores how currency fluctuations and regional demand shifts influence global scrap pricing.
SuperMetalPrice Commentary:
The January Japan scrap tender illustrates the strategic role of currency and regional demand in scrap markets.
A weaker yen combined with emerging Bangladeshi demand pushes prices above previous market levels.
SuperMetalPrice expects continued upward pressure on H2 scrap if US and Turkish markets remain strong.
This trend could influence Asian steelmakers’ sourcing strategies and global scrap flows through Q1 2026.
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