Vietnam’s imported scrap market remained steady despite lack of support from the downstream market. Meanwhile, imported scrap prices remained on the higher side, which created a disparity in bids and offers. Steelmakers are waiting for a clearer market picture for fresh bookings.
Additionally, buyers and mills are waiting for the upcoming Kanto tender scheduled for 9 November. A few deals might get concluded after the results, SteelMint expects.
Indications for imported Japanese bulk H2 scrap are at $375/t CFR, down $5/t w-o-w. Japanese suppliers have lowered their offers owing to limited enquiries from overseas buyers and also because consumption has slowed down in the domestic market.
Meanwhile, indicative offers for US-origin bulk HMS are at $360/t CFR Vietnam.
Vietnamese buyers and steel mills are likely to wait for further clarity on market direction. The slowdown in the global scrap market and the absence of major scrap procurement countries like Turkiye from the market has kept buyers cautious. Additionally, suppliers have lowered their offers amid muted a response from buyers.
Vietnam’s billet export offers edge down: Vietnam’s BF-grade billet export offers fell marginally by around $5/t w-o-w to $485/t FOB. A weak scrap market and decline in rebar consumption in the region weighed on billet export offers, SteelMint understands.
Overview of other SE Asian scrap markets
- Thailand: South America-origin HMS 1&2 (70:30) was offered at $305-310/t CFR. However, no deals were recorded.
- Taiwan: Taiwan’s imported scrap prices for Australia-origin HMS 1 and 2 (80:20) stood at $330-335/t CFR Taichung.
Outlook: Market participants believe that the market is likely to pick up after the Kanto tender, whereas bids for the tender may fall on limited trades.
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