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East Asia: Weaker exchange rates are supporting H2 scrap steel export quotations, but subdued demand is capping trading activity.

Category: Blog

Time:2026-07-07

East Asia: Weaker exchange rates have supported H2 scrap export quotations, but subdued demand is constraining trading activity. As of the week ending July 6, despite the yen’s depreciation, Japan’s H2 black scrap export market remained under pressure, with weak demand in Southeast Asia and competitive deep-sea offers continuing to weigh on transaction volumes. Although the weaker yen has enhanced exporters’ competitiveness by boosting returns in yen terms, market participants note that domestic steel mill purchasing remains the key factor influencing export pricing.

East Asia: Weaker exchange rates are supporting H2 scrap steel export quotations, but subdued demand is capping trading activity.

　　As of the week ending July 6, despite the yen’s depreciation, Japan’s H2 black scrap export market remained under pressure, with sluggish demand in Southeast Asia and competitive deep-sea quotations continuing to weigh on trading activity. Although the weaker yen has enhanced exporters’ competitiveness by boosting returns in yen terms, market participants note that domestic steel mill purchasing remains the key factor influencing export pricing.

　　Weekly Assessment:

Japan’s H2 scrap steel CFR Vietnam is priced at USD 370 per tonne, down USD 5 per tonne week-on-week.

In Japan, H2 scrap steel FOB Tokyo Bay is priced at 53,000 yen per ton (US$327 per ton), up 1,600 yen per ton (US$10 per ton) week-on-week.

U.S.-origin HMS 80:20 bulk scrap, CFR Vietnam, is priced at USD 378 per tonne, down USD 5 per tonne week-on-week.

　　Japan Market: Japan’s scrap export market has shown mixed trends, with FOB prices in yen strengthening contrasting against weaker CFR quotes to Vietnam. H2 export offers stand at $370–$372 per tonne CFR Vietnam, down from last week’s $375–$377 per tonne CFR, while buyers remain firm at around $365 per tonne CFR, sustaining a persistent bid‑ask spread. Market participants note that the weaker yen has improved exporters’ returns in local currency, yet its impact on pricing remains limited, as overseas buyers continue to push for lower prices. One Japanese market source remarked that the yen’s depreciation has yet to deliver any meaningful boost to exports, as the reduced purchasing prices sought by international buyers largely offset the exchange‑rate advantage. Tokyo Steel lowered its H2 procurement price by 500 yen per tonne ($3 per tonne) to 53,500 yen per tonne at its Nagoya plant, signaling cautious sourcing. H2 receipt prices are reported at 52,000–53,500 yen per tonne ($321–$330 per tonne) FAS, while FOB Tokyo Bay has risen by 1,600 yen per tonne ($10 per tonne) to 53,000 yen per tonne ($327 per tonne), supported by exchange‑rate movements. Market sources also point out that high‑value scrap is largely retained by domestic steelmakers, with exports dominated by lower‑grade materials.

　　Vietnam Market: Vietnamese buyers maintained a cautious purchasing stance this week, postponing bookings amid weak demand for finished steel products and expectations of further price declines. Japan’s H2 trading levels hovered around $365 per tonne CFR, with most mills opting to wait for additional corrections. The deep-sea scrap market also weakened, with U.S.- and Australia‑originated HMS 80:20 quoted at approximately $380 per tonne CFR Vietnam, while buyers’ target prices ranged from $370 to $375 per tonne CFR. A market source noted that sluggish downstream steel demand and competitive global scrap prices continue to weigh on import sentiment, with only a limited number of mills actively seeking deep-sea cargoes.

Keywords: East Asia: Weaker exchange rates are supporting H2 scrap steel export quotations, but subdued demand is capping trading activity.

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East Asia: Weaker exchange rates are supporting H2 scrap steel export quotations, but subdued demand is capping trading activity.

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