Vietnam’s imported scrap market remained quiet this week, with limited deals being reported. Dull finished steel market sentiments amid Covid concerns and discrepancies in bids and offers remained major factors behind the limited inquiries.
Imported scrap offers to Vietnam for Japanese H2 is being offered at $490-495/t CFR levels. A total of around 14,000 tonnes (t) of Japanese H2 scrap were awarded at an average price of JPY 47,888/t ($436), FAS, in Japan’s monthly Kanto Tetsugen ferrous scrap export tender for Jul’21 which was concluded on 9 July’21. Sources highlighted that it was booked for Vietnam.
While no firm offers were reported for US-origin bulk cargo, most cargoes have been sold out for Aug’21 shipments and are yet to quote fresh offers for Sept’21 shipments.
Domestic scrap buying in Vietnam remains limited: Ferrous scrap prices in Vietnam remained firm for yet another week. The current purchase price for H1 scrap is at VND 10,700/kg ($470) and VND 10,400/kg ($450) is the price set for H2 grade scrap. However, purchase volumes have remained limited.
Chinese buyers have shown more interest in Vietnamese semi-finished products which have somehow supported the sentiments. Chinese buying interest for imported billets has remained supported this week on higher domestic billet prices, thanks to rising steel futures. In a recently confirmed deal, 30,000 t of Vietnam-origin BF route billets were booked at $665-670/t FoB Vietnam for Aug’21 shipment. Although the destination for this deal could not be confirmed at the time of publishing, it is expected to be Taiwan or China with freight rates ranging from $20-25/t.
Indonesia’s scrap market muted: The imported scrap market in Indonesia mainly remained quiet for yet another week. Many mills lowered output due to Covid restrictions. Less demand for steel led to a slowdown in imported scrap bookings. Imported shredded scrap offers stand at $510-515/t CFR.
Imported scrap offers into Taiwan fall: Imported scrap offers into Taiwan have registered a decline. Offers for HMS 1&2 (80:20) stood at $460-465/t CFR Kaohsiung levels. However, shredded prices were at $500-505/t, CFR.
Imported scrap prices up, trading subdued in Thailand: Thailand HMS rates for Central America-origin scrap were at $410-415/t this week, up by $10-15/t w-o-w.
Leave a Reply