Japan’s scrap export tender continues to rise after a sharp February increase driven by strong Bangladeshi demand. The latest auction from Kanto Tetsugen confirms firm export sentiment for H2 scrap. Market participants now reassess price direction across Asia.
A total of 20,000 tonnes of H2 scrap cleared at ¥48,083 per tonne fas. The price marks a ¥1,312 increase from January levels. Notably, it represents the highest tender result since August 2024. On a fob basis, the price reaches ¥49,083 per tonne.
The cargo will ship to Bangladesh in March. A Bangladeshi mill secured the tender for the second straight month. The equivalent cfr price stands near $365 per tonne. However, Bangladeshi mills targeted around $355 per tonne cfr last week.
Japan’s Scrap Export Tender Continues to Rise Amid Cautious Regional Response
Japan’s scrap export tender continues to rise despite mixed reactions from overseas buyers. Many regional importers expressed caution after the higher award level. Several buyers signaled resistance to matching similar offer prices.
A Vietnamese buyer noted that upcoming holidays would delay fresh procurement decisions. As a result, trading activity could slow in the near term. Meanwhile, Taiwanese and Vietnamese buyers remained active last week in the seaborne market.
Tradeable H2 scrap levels hovered at $292–294 per tonne fob. These prices stood $10–15 below the latest tender outcome. Even after excluding quality premiums, the gap remains significant.
H2 Scrap Price Benchmarks Signal Tightening Market
Independent market assessments placed H2 scrap fob Japan at ¥46,000 per tonne on 9 February. January’s monthly average reached ¥45,186 per tonne fob. These figures indicate gradual upward momentum in export pricing.
Domestic indicators show stability. Tokyo Steel kept its local scrap purchase prices unchanged on the day. However, export momentum could influence domestic adjustments if demand persists.
Japan’s scrap export tender continues to rise as Bangladeshi mills compete aggressively for tonnage. Consequently, exporters may test higher offer levels in coming weeks. Yet regional resistance could limit further upside unless deep-sea demand strengthens.
SuperMetalPrice Commentary:
Japan’s scrap export tender continues to rise because Bangladesh currently anchors regional demand. However, the widening gap between tender prices and spot tradeable levels signals risk. If Vietnamese and Taiwanese mills resist higher offers, exporters may face short-term pressure. Still, steady benchmark gains and consistent Bangladeshi buying support a cautiously bullish outlook for H2 scrap prices.
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