Vietnam’s imported scrap market remained stagnant on negative domestic sentiments. The downtrend in the rebar market and limited demand turned steelmakers and buyers cautious. However, imported scrap offers for Japanese material continued to move up.
Indications for imported Japanese bulk H2 scrap are at $380/t CFR levels, unchanged w-o-w. Japanese suppliers are less interested in lowering their offers for other overseas buyers such as South Korea, Taiwan, and Bangladesh. Suppliers are getting better price margins in the domestic space as demand for scrap has increased over other substitute materials.
Meanwhile, indicative offers for US-origin bulk HMS are at $360-365/t CFR Vietnam.
With the development of the Vietnamese economy, the demand for steel in industries like construction, automobile, and household appliances is increasing. However, due to the negative impacts of the Ukraine-Russia war that pushed higher the price of oil and other commodities, the value of steel and steel billet products fell sharply.
Some mills have suspended steel production for the time being.
Vietnam’s billet export offers unchanged w-o-w: Vietnam’s BF-grade billet export offers stood unchanged at around $490/t FOB. A weak scrap market on the back of decline in rebar consumption in the region weighed on billet export offers, SteelMint understands.
Overview of other SE Asian scrap markets
- Thailand: Central America-origin HMS 1&2 (70:30) was offered at $315-330/t CFR, unchanged w-o-w, however, no deals were recorded.
- Taiwan: Taiwan’s imported scrap prices for US-origin HMS 1 and 2 (80:20) stood at $370/t CFR Taichung. Buyers are mostly quiet due to the disparity between bids and offers.
Outlook: The major steel mills and buyers are likely to remain less active in booking fresh imported scrap. Buyers are waiting for a clearer market picture and price direction.
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