SE Asian imported scrap market has exhibited mixed responses. Vietnam observed stability in prices, however, Thailand offers saw a decline.
Bulk Japanese scrap offers for Vietnam have remained unchanged in a recent deal.
- 3,000 t of Japanese H2 in bulk has been booked at around $295/t CFR, towards the closing of the last week. While prior to this few deals were concluded for 5,000 t of H2 in the range of $295-297/t CFR Vietnam basis.
- Offers for bulk Japanese H2 now stand at $290/t CFR Vietnam level, whereas limited offers were reported from USA.
- There is a buzz around the market that Vietnam has booked US west coast origin bulk HMS cargo at around $310/t CFR Vietnam basis.
- SteelMint’s assessment for Japanese bulk H2 stands at $295/t, CFR Vietnam level, while assessment for bulk HMS (80:20) offers from USA stands at $307/t, CFR, up by $2 w-o-w.
The construction activities have now increased, and in the coming months, Vietnam will have a prosperous step after the epidemic due to increased demand, according to Vietnam Steel Association (VSA) report. Despite numerous challenges this year due to COVID-19, the Vietnam government forecasts 2.0-2.5% GDP growth in 2020, while outlook for all other countries in the ASEAN region is negative, as per reports.
Indonesian buyers hesitant to buy scrap on worries of the new regulation: Indonesian buyers remained hesitant to buy scrap last week due to the new regulation which has come into effect from 1st Oct’20, SteelMint learned. The Indonesian government wants to understand better the origin of these materials hence the new registration process applies to exporters in any country.
Thailand imported scrap offers fall w-o-w: Imported scrap market remain silent last week as buyers opted to wait and watch for the rainy season due to heavy rainfall which has impacted all over the country. Offers from South America currently stand at $270/t CFR for HMS 1&2 (80:20) in containers, down by $5-10 w-o-w. No bulk scrap bookings were reported.
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