Imported scrap trades in Vietnam improved gradually over the last couple of weeks, with a few mills actively procuring a good quantity of Japanese material. However, the continuous decline in finished steel demand keeps buyers cautious. On the other hand, Japanese suppliers have increased their offer price owing to increased enquiries from other prominent buyers like South Korea.
Japanese bulk H2 offers are now at $430/t CFR levels, moving up by $10-15/t w-o-w. Additionally, around 10,000 t of Japanese material was booked at $415/t CFR last weekend. Prices are hovering at two-month highs.
However, no firm offers were received for USA-origin bulk HMS cargoes.
Mills are waiting for the next Japanese Kanto scrap export tender, which is scheduled for 9 September. A total of 20,000 t of scrap was awarded at the last tender and the average price for H2 material stood at around JPY 42,061/t ($312/t) FAS. Prices have fallen by JPY 2,493/t ($19/t) levels from JPY 44,554/t ($330/t) in July. Notably, prices have hit a 16-month low on subdued market sentiments but may not further decline from current levels.
Vietnam’s billet export offers rangebound: Vietnam’s BF-grade billet export offers were rangebound w-o-w at around $530/t FOB. According to market sources, trade activities were mostly absent throughout the week, and demand for semi-finished steel remained subdued owing to public holidays. However, increased scrap prices are supporting billet offers.
Overview of other SE Asian scrap markets
- Thailand: Indicative offers for Central America-origin HMS 1&2 (70:30) were at $325-330/t CFR, down by $5-10/t w-o-w.
- Malaysia: Offers for Australia-origin shredded scrap were assessed at $410/t CFR Klang.
Outlook: Imported scrap prices into Vietnam are likely to edge up further on increased overseas demand for Japanese material. Whereas a few mills have postponed bookings opting to wait for the Kanto tender.
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