The global ferrous scrap rally slowed down towards the end of last week after prices dropped in Turkey. Vietnam and other Southeast Asian countries are struggling to keep pace with high offers from global suppliers. Additionally, the disparity in bids and offers kept trading activities constricted.
Vietnam’s steel sector is moving at a slow pace, as the input costs have increased significantly. Imported scrap offers for the deep-sea cargo and the nearest supplier, Japan, were kept high.
Japanese bulk H2 offers are quoted at $630/t CFR levels, while the bids are comparatively lower at $610/t CFR levels. No fresh deal has been concluded yet. “Buyers need to raise their bid prices to procure fresh slots as they don’t have any other option”, said a Japanese scrap trader.
On the other hand, no firm offers were heard for US-origin bulk cargoes.
Vietnam’s steel production and sales
- Production of finished steel reached 2.584 million tonnes (mnt) in Feb’22, up by 1.16% compared to Jan’22 and 16.1% over the same period in 2021.
- Steel sales of all kinds reached 2.574 mnt in Feb’22, up by 5.8% over the previous month and up 30.1% over the same period last year, as per the Vietnam Steel Association (VSA).
Overview of other SE Asian markets
Thailand: Market activities slowed down compared to the preceding week. Buyers are holding back and opting to wait and watch.
- HMS 1&2 (70:30) of Central America origin were offered at $525-528/t CFR LCB, inching up $2-3/t w-o-w.
- Shredded of Australia origin was at $610/t CFR LCB.
- HMS 1&2 (80:20) were at $540/t CFR LCB
Indonesia: Fresh offers for the most preferred grade, plates, and structurals (PNS) increased further. PNS is being offered at $590/t CFR Jakarta, up around $10/t w-o-w.
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