Vietnam: Imported scrap trade subdued, slight price correction likely

The imported scrap market in Vietnam remained less active owing to increasing Covid-19 cases and recent correction in Japanese domestic scrap prices.

Imported scrap offers into Vietnam for bulk Japanese H2 are heard at $495-500/tonne (t) CFR levels. Market sources are expecting a price correction after Tokyo Steel slashed prices today, 19 Jul’21. The leading Japanese electric-arc furnace (EAF) steel mill announced its second revision in regard to scrap buying, effective from 20 Jul’21. The company decreased prices by JPY 500-1,000/t ($5-9) for four of its steelworks, excluding the Utsunomiya plant. After the revision, the company would pay a bid price for H2 scrap at JPY 50,000/t ($455/t) for the Tahara works.

No firm bulk scrap offers have been reported from the US as suppliers there were active in concluding deals to Turkey.

Vietnam’s domestic scrap prices unchanged, steel trade subdued: Domestic ferrous scrap prices in Vietnam remained unchanged today after prices moved up by VND 500/kg ($22/t) on 16 Jul’21. The new purchase price for H1 scrap is VND 11,200/kg ($490/t), while VND 10,900/kg ($470/t) is the price set for H2 grade scrap. Limited scrap collection amid rising Covid cases had lifted domestic scrap prices, SteelMint notes.

On the other hand, domestic rebar sales remained less due to work time restrictions amid rising Covid cases. Vietnam’s steel production in Jun’21 reached 2,562,810 t, which decreased by 12.21% m-o-m but the same increased by 31% over the same period last year. Steel sales across categories touched 2,095,708 t, down by 15.35% m-o-m as compared to May’21, but up 19.2% over the same period in 2020.

However, BF-route billet offers from the country increased by around $25/t on active Chinese buying, on a w-o-w basis. According to SteelMint’s sources, BF-route offers are at $690/t FoB.

Market highlights of other SE Asian countries

• Indonesia’s scrap market quiet: The imported scrap market in Indonesia was quiet last week, owing to discrepancies in bids and offers. Higher grade busheling bundle from Australia was sold at $400/t CFR Jakarta.
• Imported scrap prices rise in Thailand: Central America-origin HMS 1&2 (80:20) offers have increased further by $10-15/t and are now heard at $425/t, CFR Thailand last week, up by $10-15/t w-o-w.
• Imported scrap bids in Taiwan drop by $10/t: Imported scrap prices into Taiwan have registered a decline. Bids for HMS 1&2 (80:20) were heard at $450/t CFR Kaohsiung levels.