- Typhoon Kalmaegi halts construction, limits scrap demand
- Mills favour domestic scrap as flooding disrupts logistics
Vietnam’s imported ferrous scrap prices fell slightly w-o-w, as Typhoon Kalmaegi and heavy rains disrupted logistics and paused construction activity across major regions. Despite mild support from a weaker yen and Tokyo Steel’s domestic bid hike, overall demand for imported scrap stayed subdued as cautious mills preferred sourcing domestic material.
Weekly assessments
- Japanese H2 scrap was at $325/t CFR, down by $1/t w-o-w.
- US-origin HMS 80:20 bulk stood at $345/t CFR Vietnam, down by $3/t w-o-w.
Market updates
Japanese H2 offers were heard between $325-335/t CFR Vietnam, with some traders quoting $325-328/t CFR amid currency fluctuations. H2 was at $320-325/t CFR, unchanged for the third straight week.
In the deep-sea segment, US-origin HMS 80:20 bulk offers held firm at $350/t CFR Vietnam, while bids were mostly $335-340/t CFR. Vessels from the US and South America were heard at $300-305/t CFR, against bids near $290/t CFR, reflecting subdued buying interest.
A trader commented, “Buyers have shown some interest in December shipments, but due to flooding and slow construction, demand for finished steel remains weak.”
Domestic updates
Domestically, HMS (3-6 mm) was at $303-346/t in the south and $329-362/t in the north (ex-VAT). Mills continued to prioritise local scrap purchases due to faster delivery and lower costs.
Outlook
The market is expected to remain steady but cautious in the near term, with flooding, vessel delays, and weak downstream demand weighing on sentiment. Limited upside support may emerge from tightening regional supply and a softer yen, which could enhance export competitiveness for Japanese suppliers.
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