SE Asia’s imported scrap market players yet to return from the holiday

Imported scrap market’s new participant country- China has concluded its first deal from Japan recently whereas Southeast Asia’s scrap market was observed mostly silent last week as most of the countries were enjoying the new-year holidays last week.

Imported scrap prices to Vietnam likely to up- Japanese suppliers are yet to quote fresh offers for Japanese H2 grade to Vietnam. Fresh offers for Japanese H2 are likely to be quoted from the mid of this week at around $485-490/t CFR Vietnam levels, as per SteelMint. Vietnamese steelmakers are also awaiting fresh offers for HMS 1&2 (80:20) from USA.

SteelMint’s assessment for Japanese H2 stands at $475/t CFR Vietnam basis, up by $5 w-o-w. However, deals were not reported at these levels due to holidays last week. Assessment for USA origin bulk HMS 1&2 (80:20) stands at $485/t CFR Vietnam level, up by $5 w-o-w.

Vietnam’s rising manufacturing industry- Vietnam aims to develop itself as an export-driven economy. By establishing economic zones and industrial parks, the government is proactively taking steps to foster manufacturing investments. In the past two decades, Vietnam has evolved into a leading manufacturing hub in ASEAN. As the country aims to be an export-driven economy, it requires importing raw materials and then exporting finished goods.

Indonesian market insiders yet to return from holidays– Before the holiday break Indonesian market participants were more focused on completing their registration process proactively. The new government regulation had mandated that registration formalities should be completed before 1st Jan’21. On the other hand, dissimilarity in offers and bids was observed as imported scrap offers were much higher than the buying price of mills, SteelMint understands.

Buyers are waiting for the fresh offers which may clear the market direction further this week, and offers may witness a slight upward trend in the coming days. Previously, offers for PNS in 20 ft container were quoted in the range of $440 – 450/t CFR Jakarta level.