Japan’s Scrap Exports Fall in November Amid Weak Overseas Demand

Japan’s Scrap Exports Fall in November: Key Figures

Japanese ferrous scrap exports fell 21% month-on-month to 590,000 tonnes in November, according to Japanese customs data. Despite this decline, exports were still 2% higher than the same month last year. Total shipments from January to November reached 7.01 million tonnes, a 21% increase year-on-year. The drop reflects weaker overseas appetite following the four-year high in October.

Vietnam remained the largest buyer, although volumes declined 19% year-on-year to 212,000 tonnes. The prolonged rainy season slowed construction activity, reducing scrap procurement. Bangladeshi mills also imported less compared to October, though their purchases more than doubled from the previous year. Meanwhile, South Korea saw a modest month-on-month increase due to a lower base in earlier months.

Factors Driving the November Export Decline

The November decline was largely expected as domestic scrap prices rose above overseas levels. Tokyo Steel increased collection prices by ¥4,000/t ($25.60/t) from October to November, while the Argus H2 fob Japan assessment rose only ¥2,200/t. The price gap reflects tight domestic supply and yen depreciation against the US dollar. Consequently, exporters faced higher costs, reducing shipments abroad.

Overseas steelmakers showed limited interest in higher-priced Japanese scrap due to weak regional steel demand. Traditional construction-season demand in Asia fell short, discouraging large-volume purchases. Exporters anticipate further declines in December as buyers remain cautious amid political uncertainties and payment issues in key markets.

SuperMetalPrice Commentary:

Japan’s scrap export trends illustrate the impact of domestic pricing and currency shifts on global metals flows. Tight supply and rising domestic prices are likely to sustain higher local steel production costs. Investors and traders should monitor Southeast Asian demand, especially in Vietnam, Bangladesh, and South Korea, to assess short-term scrap market movements. Japanese ferrous scrap remains a critical indicator for regional steel pricing.