Vietnam’s imported scrap trade remains bearish as finished steel market sentiments are yet to improve. The end-users and traders are pessimistic on demand from finished steel users. The sharp decline in demand has slowed down imported scrap trade over the last few weeks.
- SteelMint assessment for Japanese H2 material is at $360/t CFR levels, moving down by $8/t w-o-w. Japanese suppliers continued to decline scrap offers on low interest from overseas buyers.
- Assessment for US-origin bulk offers are now at $360/t CFR levels, unchanged w-o-w. However, buyers are yet to resume bulk cargo bookings.
Low overseas demand, slow domestic construction activities and volatile global steel prices are among the prime reasons behind the drop in production levels and prices, informed sources.
The Vietnam Steel Association is pressing the central government in Hanoi to provide financial help to steelmakers and speed up the launch of public works projects, according to Vietnam News Service.
Furthermore, many property developers are scaling down their business as suspensions, investments or constructions are delayed. They have also stopped deploying new projects.
The country’s major steel producer, Formosa Ha Tinh, has started increasing its overseas trade activities as domestic demand continues to remain lacklustre, sources informed.
Overview of other SE Asian scrap markets
- Indonesia: Fresh offers for Australian shredded are at $388/t CFR levels while HMS1 and rebar mixed are at $380/t CFR basis. Imported scrap prices are moving up, following global cues.
- Thailand: Fresh offers for HMS 1&2 (70:30) were heard at $305-310/t CFR levels. However, buyers are more into booking billets, SteelMint learnt.
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