Vietnam: Market awaits Japan’s Kanto tender outcome for clear price direction

Vietnamese scrap buyers have become active in inquiring about imported Japanese and US offers. Market sentiments are positive as finished steel demand is good in domestic and overseas markets. However, due to the ongoing public holidays, the market is likely to remain quiet early this week.

The Ho Chi Minh City economy beat experts’ predictions with 1.88 % growth in the first quarter after shrinking by 11.6% and 25% in the last two quarters.

Japanese bulk H2 is being quoted at $630/t CFR levels. However, buyers are waiting for a clear price direction. Japan’s monthly Kanto Tetsugen ferrous scrap export tender has been scheduled for 12 April, 2022, sources informed SteelMint. Last month, a total of 10,000 t of scrap was awarded and the average price for H2 scrap stood at JPY 63,510/t ($548/t) FAS, higher by JPY 7,665 ($66/t) m-o-m.

As a prominent scrap buyer, South Korea remained active in placing a bid for Japanese scrap in the absence of Vietnam and other buyers like Taiwan a week ago. South Korea’s major mill, Hyundai Steel, lifted the bid price for Japanese H2 grade a week ago, while last week the company kept its bid unchanged, to ensure suppliers would not increase their offers.

Vietnam’s billet export offers down: Vietnam’s BF billet export offers stood at $770/t FOB. However, no deals were heard and concluded last week.

Overview of other SE Asian markets

• Thailand: Thailand, an emerging imported scrap country in South East Asia, witnessed active booking in the last couple of weeks on high demand from end-users. Prices have inched down by $2-4 w-o-w. In a recent deal, around 1,500 t of Central America-origin HMS 1&2 (80:20) have been booked at $550/t CFR LCB. Another 1,500 t of HMS 1&2 (60:40) from the same origin have been sold by a prominent trader at $540/t CFR LCB.

Fresh offers are now at $535-540/t CFR levels for Central America’s HMS 1&2 (70:30), while the Australian shredded is being quoted at $600-610/t CFR levels.

•  Indonesia: Fresh offers for the most preferred grade, plates, and structural (PNS) increased further. PNS from Hong Kong and Singapore are being offered at $610/t CFR Jakarta, unchanged for another week.