Global scrap prices have dipped for yet another week. However, USA origin suppliers managed to conclude a deal for bulk scrap cargoes to Vietnam. Trades from Japan remained slow as buyers are expecting prices to come down further.
In a recent deal, Vietnam’s Hoa Phat has booked USA origin bulk scrap cargo at the end of last week. The cargo comprised of 35,000t HMS 1&2 (80:20) and was booked at $465/t CFR Vietnam basis, reliable sources have confirmed to SteelMint. The prices have declined by $10 w-o-w, against the last deal that was concluded at $475/t CFR levels.
- SteelMint’s assessment for bulk USA origin HMS 1&2 (80:20) to Vietnam stands at $460-465/t CFR levels, registering a drop of $10/t compared to the beginning of last week.
- SteelMint’s assessment for Japanese H2 bulk scrap cargo stands at $450/t CFR Vietnam basis, witnessing a sharp fall of $20 w-o-w. Fresh offers are being quoted at $445-455/t CFR levels.
“Domestic sales of finished long steel are yet to pick up. Also, the sharp volatility seen in the Chinese futures & spot steel market last week has resulted in limited imported scrap bookings. Domestic scrap has been preferred over imported scrap”, highlighted a Vietnam-based market participant.
Domestic scrap prices in Vietnam rise further: Vietnam’s domestic scrap prices have moved up by VND 300/kg ($13) w-o-w. H2 grade scrap price now stands at VND 9,500/kg ($413) exw against VND 9,200/kg in the preceding week, SteelMint learnt.
Vietnam’s ferrous scrap import drops 16% m-o-m: SE Asia’s largest ferrous scrap importer- Vietnam has observed a decrease of 16% m-o-m in Feb’21. The country imported 0.32 mn t as against 0.38 mn t a month ago, as per the data maintained with SteelMint. Japan continues to remain the largest supplier at 0.22 mn t, up by 22% m-o-m. Limited scrap bookings due to Tet holidays resulted in lower imports.
Imported scrap trades in Indonesia pick up as offers drop: After continuous silence in the preceding week in the imported scrap market, few buying activities have been witnessed last week as prices have declined significantly.
Indicative imported scrap prices:
- PNS: Fresh offers is being quoted at $450-455/t CFR Jakarta
- HMS1: $435-438 CFR Jakarta
- Busheling: $455-460/t CFR Jakarta
Thailand scrap offers decline following the global trend: Following the global price downtrend, imported scrap offers to Thailand have come down. HMS offers from Central America have dropped considerably by $10-15 w-o-w and currently stand at $385-390/t CFR levels.
Taiwan based mills await further price correction: Meanwhile, in Taiwan, mills have lifted their bid price by around $7 early last week. While in the middle of the week it suddenly went down up by $10 and now most of the mills prefer to wait as they expect the price to go down further.
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