Japanese ferrous scrap exports continued to decline on the year in February, but posted a strong rebound from the previous month, driven by renewed demand from Bangladesh and Thailand.
- Exports rose by 37pc on the month to 628,000t in February, Japanese customs data show. But February volumes were still 5.5pc lower than a year earlier. Total exports in January-February fell by 11pc on the year to 1.09mn t.
- Shipments to Vietnam were largely stable compared with January but declined by 18pc on the year. Demand from Vietnamese mills was subdued during the lunar new year holiday period, traditionally a slow season. Buying activity picked up again from late February as mills began restocking for the construction season.
- Exports to Bangladesh increased significantly, given that mills returned to the seaborne market after limited activity at the end of 2025. Market participants expect Bangladeshi demand for Japanese scrap to strengthen further, supported by a recovery in buying interest following the February national election. At the same time, reduced US supply to south Asia because of higher freight costs and stronger demand from Turkey also supported mills' demand for Japanese scrap. Kanto export tender cargoes were awarded to Bangladesh in the first three months of the year.
- Thailand imported 59,000t of Japanese scrap in February, well above the 2025 monthly average of 18,000t. Japanese traders received increased inquiries from Thai mills, particularly those with Japanese investment.
- In contrast, demand from Taiwan remained weak, given that mills continued to favor more competitively priced containerised scrap. Total exports to Taiwan in January-February fell by 73pc, compared with the same period a year earlier.
- Japanese scrap exports may ease in the coming months as export conditions become more challenging following the outbreak of conflict in the Middle East. Suppliers have shown a growing preference for domestic sales to mitigate risks. Japan's domestic scrap market has strengthened significantly since mid-February, with H2 prices rising by ¥6,000/t ($37.57/t) over 19 February-31 March.
| Japan ferrous scrap exports | t | ||||
| Feb '26 | m-o-m ± % | y-o-y ± % | Jan-Feb '26 | y-o-y ± % | |
| Vietnam | 246,017 | -3.3 | -18.1 | 500,362 | -9.2 |
| Bangladesh | 156,734 | 591.8 | 53.4 | 179,390 | 4.4 |
| South Korea | 106,158 | 4.1 | -9.3 | 208,133 | -13.9 |
| Taiwan | 13,400 | 70.7 | -73.4 | 21,247 | -73.3 |
| Others | 106,076 | 47.1 | 11.5 | 178,207 | 0.4 |
| Total | 628,384 | 36.9 | -5.5 | 1,087,339 | -11 |
| Source: Japan Customs | |||||
