With overall steel sales of 2,455,845 t in Nov’ 20 – a sharp increase of 36.88% m-o-m, Vietnam’s steel scenario is looking extremely positive. Incidentally this is also an increase of 20.9% y-o-y according to data released by VSA (Vietnam Steel Association).
Vietnam’s steel industry continued to maintain its recovery momentum in Nov’20 as production, trade, and consumption continued to grow. Japan’s scrap export offers observed a significant hike immediately after Japan’s Kanto scrap export tender concluded towards the closing of last week, at the uppermost level of JPY 38,710/t FAS (ten years high). Despite high imported scrap prices, domestic production and sales have increased on a monthly basis.
On the other hand, due to disparity between bids and offers, mostly suppliers have stopped quoting fresh offers for deep-sea origin bulk cargoes, and most of the buyers have opted to wait and watch approach while looking for a price correction.
SteelMint assessment for Japanese H2 in bulk is at $420/t CFR Vietnam level. Notably, the price has increased over $40 since the beginning of last week whereas assessment for USA origin bulk HMS 1&2 (80:20) currently stands at $435/t CFR Vietnam level.
Sharp hike in scrap offers kept Indonesian buyers away –
The market seemed quiet last week in Indonesia. However, Malaysian suppliers could still supply at a high level of offers, due to low local scrap prices. No fresh offers were reported from UK/USA to Indonesia, due to the struggle to get containers at the moment.
Fresh offers for busheling were at $400 /t CFR Jakarta basis, while mills are bidding at $390/t level. Hong Kong origin PNS in 20 ft container is being offered at $375/t CFR Jakarta, up by $15-20 w-o-w. Firm offers for shredded and HMS were absent last week, due to high offers.
Imported scrap price in Thailand rise following global trends – Following a global scrap price uptrend, imported scrap price to Thailand witnessed a hike on a weekly basis. Central American HMS 1&2 (80:20) offers have climbed by $40/t w-o-w and currently stands at $360/t CFR Thailand level, as compared to $320 was reported last week. However, limited deals were reported at these levels.
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