Bids from Vietnam increased to $395-$400/t CFR for H2 grade due to pre-Lunar New Year restocking, higher domestic rebar and billet prices, and increased production capacity utilisation rates. Japanese traders offered H1/H2 50:50 scrap to Taiwan at $396-$407/t CFR and H2 scrap at $405-410/t CFR for Vietnam. However, buyers were reluctant to accept these higher offers, and interest for seaborne cargoes in South Korea started to pick up, with a bid issued for H1/H2 50:50 grade at a lower level than Vietnam and Taiwan tradable.
Amidst a surge in scrap prices, a Vietnam-based trader noted that Vietnam is currently accepting $400-$405/t CFR for H2 scrap, making it a favourable destination. Market participants, including Japanese and Vietnamese traders, expressed surprise at the sharp price increase and the choice of Vietnam as the destination, expecting the Kanto tender cargo to conclude there. Tokyo Steel raised its price due to a higher concluded tender level and surging Vietnamese import prices, with H2 scrap reported at $405/t CFR.
However, the increased prices are no longer considered feasible for the majority of sellers. While the Bangladesh market price has not changed significantly, the competition for Japanese material has intensified with Vietnam and South Korea, leading to higher costs for Bangladesh mills. Despite optimistic expectations for the upcoming spring season, demand in Vietnam is currently not robust, and mills face economic uncertainties.
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