Vietnam: Bulk imported scrap prices soar further on active bookings

Vietnam’s crude steel production has increased significantly in the last couple of years. The country’s crude steel production was recorded at 3.37 mn t in Oct’20, which is highest since Jan’16, as per data maintained with SteelMint. Vietnam leads Southeast Asia nations in both production and consumption of steel. Increasing finished steel demand in construction, automobile, and infrastructure sectors has kept scrap buyers active in the market.

Imported scrap prices in Vietnam have surged by $15-18 over a week. In a recent deal concluded Vietnamese mill have been booked around 5,000 t of Japanese scrap towards the closing of last week, and the deal concluded with the composition of H1:H2 (50:50) at around $375/t CFR Vietnam basis.

Furthermore, numerous deals for Japanese H2 were concluded at $360-365/t CFR level towards mid of last week. SteelMint’s assessment for bulk Japanese H2 offers is stands at $368/t CFR level and for that US-origin HMS 1&2 (80:20) is stands at $387/t CFR Vietnam, up by around $15 w-o-w.

Indonesian imported scrap market observes disparity between bids & offers: In Indonesia, the offer price has risen a lot compared to last week, however, the mills could not catch up with this level, and the disparity between bids and offers kept the buyers away from the market.

Recent offers-

• HMS 90:10 in 20ft container- $345 CFR Jakarta
• PNS in 20 ft container- $350-355/t CFR Jakarta, up by $10-15 w-o-w
• Busheling in 20 ft container-$365-370 CFR Jakarta, moving up by $5-10 on a weekly basis
• Shredded 211- $350-355 CFR Jakarta, up by $10-15 w-o-w

Thailand observes limited buying at increased scrap offers: Imported scrap prices have surged globally another week, hitting a record high on continue increasing offers. Central American HMS 1&2 (80:20) offers have climbed by $15-20/t w-o-w and currently stands at $315-320/t CFR Thailand level. However, trade activities were reported to be limited.

Thailand’s scrap imports remained largely stable in Oct’20. The country imported 123,274 t of scrap in Oct’20 as compared to 133,522 t a month ago in Sep’20, as per customs data maintained with SteelMint. USA remained the largest scrap exporter, followed by Japan and Australia.