The depreciation of the yen against the dollar has played a significant role in boosting the prices of Japan's Class 2 scrap for export. This surge was further fueled by a decline in export offers. Japanese scrap dealers have been increasingly active in the domestic market, resulting in reduced export supplies. The latest reported price for this commodity stands at $348 per ton, reflecting a daily increase of $3.
Price Variations in Asian Markets
In Vietnam, Japanese scrap is trading in the range of $385 to $390 per ton CFR (Cost and Freight), although purchase requests have not exceeded $380. Meanwhile, in Taiwan, the demand for scrap, specifically Class 1 or 2 (50-50), hovers between $375 to $380 per ton CFR, while offers have been observed reaching up to $390.
Challenges in Japan's Scrap Market
Japan's scrap market remains stagnant, with a lack of buyers. This situation is primarily attributed to weak demand for steel, notably in consumer markets like South Korea, particularly within the construction sector.