Japanese ferrous scrap exports rose further in October, reaching the highest level since April 2021, driven by sustained demand from Vietnam and Bangladesh.
- Exports totalled 749,000 t in October, up by 2.9pc from September and 35pc on the year, according to customs data. Cumulative shipments reached 6.42mn t in January-October, a 23pc increase compared with the same period in 2024.
- Vietnam remained the largest export destination. Shipments to the country rose by 4.5pc on the month to 320,000 t in October. Vietnamese mills favoured Japanese scrap for its stable supply, quality, and shorter lead times compared with deep-sea cargoes.
- Exports to Bangladesh exceeded 150,000 t for the second consecutive month in October, because Bangladeshi mills shifted some demand to Japanese scrap on more competitive pricing. But activity slowed in November on the back of ongoing payment issues and pre-election uncertainty.
- Exports to South Korea and Taiwan declined on the year in January–October, reflecting sluggish domestic steel demand and low production levels.
- Most October shipments had been booked in September, when Japanese domestic scrap prices were below workable levels in the seaborne market, and overseas buyers were confident about the steel market in the final quarter of the year. Exports in coming months are likely to retreat on the back of an increase in Japanese domestic prices.
- Japanese domestic scrap prices have trended upward since October alongside the weakening yen. Collection prices of H2 at the Utsunomiya plant rose by ¥4,000/t ($25.64/t) to ¥43,500/t delivered to mills over 3 October -19 November. In contrast, the Argus H2 fob Japan assessment increased by only ¥2,400/t, because overseas buyers were hesitant to follow the trend on the back of thin profit margins.
- Market participants expected domestic scrap prices to remain firm on strong domestic demand. Nippon Steel and Nakayama Steel plan to build a 1.2 mn t/yr electric arc furnace slab steel mill, targeting operations after 2030. The project underscores the growing importance of ferrous scrap.
| Japan's ferrous scrap exports | t | ||||
| Country | October | m-o-m % ± | y-o-y % ± | Jan-Oct | y-oy % ± |
| Vietnam | 319,950 | 4.5 | 53.7 | 2,783,545 | 38.8 |
| Bangladesh | 159,442 | 1.9 | 51.7 | 1,151,758 | 129.2 |
| South Korea | 95,969 | -27.3 | 2.3 | 1,054,159 | -20.5 |
| Taiwan | 32,649 | 12.8 | -51.9 | 364,870 | -33.0 |
| Others | 141,463 | 35.1 | 72.2 | 1,069,446 | 25.4 |
| Total | 749,473 | 2.9 | 34.5 | 6,423,777 | 22.8 |
| — Japan customs | |||||
