Vietnam’s imported scrap prices declined by a significant $40/t week-on-week (w-o-w). However, trade remained absent on expectations of further drop in offers.
SteelMint’s assessment for Japanese H2 bulk scrap stands at $490-495/tonne (t) CFR, down by $10/t against the closing of last week. Prices declined by $40/t against 24 May’21. Currently, the bid price stands at $480/t CFR Vietnam levels, traders indicated.
Domestic scrap purchase prices fall w-o-w: Vietnam’s domestic scrap prices fell by a total VND 1,800/kg for both H1 and H2 grades. Currently, H1 is being offered at VND 9,200/kg ($400/t), while the most preferred grade of H2 is at VND 8,900/kg ($387/t).
“Currently, rebar consumption is weak and is likely to reduce further. Lower billet export offers have influenced rebar prices which should decrease to foster sales volumes,” said a prominent market insider from Vietnam.
Billet export prices fall in recent deals: Vietnam reportedly sold around 15,000 t of billets to the Philippines at $660/t, CFR. Blast-furnace-route billet export offers from Vietnam fell sharply to $650/t CFR from $760/t FoB, seen in the last week.
South Vietnam’s business hub, Ho Chi Minh City, will likely begin lockdown for 15 days from May 31 in an effort to control the spread of Covid-19. The city has seen a rise in cases related to a religious mission that has recorded maximum positive tests, accounting for most of the city’s infections, according to a government statement.
Indonesian imported scrap offers fall $40/t: In Indonesia, the market was very quiet. Steel mills and buyers preferred to wait and watch as they expected prices to go down further in the near future. Imported PNS scrap offers fell significantly by $40/t w-o-w to $480-485/t CFR Indonesia levels.
“After a week-long boom in scrap prices globally, the market has started reversing this week with the falling South East Asian markets,”, said an Indonesia-based scrap trader.
Thailand’s scrap offers stable: Fresh offers for Central America-origin HMS 1&2 (80:20) stand stable since the last three weeks at $430-435/t CFR Thailand levels However buyers are bidding at $490-495/t CFR levels for shredded scrap of same origin.
Thai automotive production dips in April’21: Thailand’s automotive production dipped by 36% month-on-month (m-o-m) to 104,335 units in April’21 as compared to 62,515 units produced a month ago. The country’s passenger and commercial car sales have come down significantly by 22% m-o-m in Apr’21, according to the Federation of Thai Industries (FTI).
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