- Bullish Chinese sentiment supports prices
- Weak steel demand limits trade activity
Imported ferrous scrap prices in Vietnam rose by up to $3/tonne (t) w-o-w, supported by tight supply and continued optimism from the Chinese market. However, trading activity remained subdued.
August Kanto tender
In the August Kanto-Tetsugen tender, a 20,000-t H2-grade lot was awarded to a Vietnamese mill at JPY 41,888/t ($285/t) FAS, up JPY 172/t ($1/t) from July’s JPY 41,716/t ($282/t). This equates to roughly JPY 42,888/t ($290/t) on an FOB basis.
Sources estimated the cargo price at around $320-325/t CFR, marking Vietnam’s first successful Kanto bid this year and the first since November 2024.
Weekly assessments
- Japanese H2 scrap was at $313/t CFR, up $3/t w-o-w.
- US-origin HMS 80:20 bulk stood at $333/t CFR Vietnam, also up $3/t w-o-w.
Market updates
A trader noted that the recent rise in H2 offers is likely tied to the uptrend in both Chinese and Vietnamese domestic markets. H2 offers to Vietnam climbed up to $320-325/t CFR, with bids at $315/t CFR.
US-origin deep-sea HMS 80:20 bulk offers were heard at $345-350/t CFR, while bids strengthened by $5-10/t to $325-340/t from the previous week’s $325-330/t.
Buyer activity also improved, with H2 bids at $310-315/t CFR Vietnam, up $6-10/t from last week’s $300-308/t, and offers increasing by $5/t to $315-325/t.
Japanese H2 scrap prices were supported by lingering optimism from the Chinese market, quality preferences for higher-grade material, and firmer offers from Japanese sellers amid tight supply.
Domestic market
A Vietnam-based mill source said some Vietnamese buyers opted for domestic scrap instead of deep-sea cargoes due to quicker lead times.
Outlook
Tight supply and Chinese market sentiment are expected to keep imported scrap prices supported in the near term, though trading volumes may remain limited until stronger downstream steel demand emerges.
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