Vietnam: Scrap prices hold firm w-o-w despite cautious mill buying

• Vietnamese mills held ample scrap inventories
• Kanto H2 tender met market expectations

Vietnam’s scrap market stayed largely unchanged on 15 December, as mills stayed cautious amid comfortable inventories.

Weekly assessments

• Japanese H2 scrap was at $324/t CFR, up by $2/t w-o-w.
• US-origin HMS 80:20 bulk stood at $344/t CFR Vietnam, up by $2/t w-o-w.

Market updates

US-origin HMS 80:20 deep-sea scrap offers to Vietnam were heard steady at around $350/t CFR on 15 December, with slight change from the previous week. H2 offers were heard at $325-328/t CFR Vietnam, broadly stable w-o-w. Some sellers temporarily stayed out of the market, testing higher levels, while Vietnamese mills kept bids range-bound around $320-322/t CFR, with limited buying interest due to comfortable inventories.

Indicative buying levels also remained unchanged, with bids reported in the $340-342/t CFR Vietnam range, reflecting a stable but cautious market.

Market participants said that 15,000 t cargo was destined for Vietnam, with the winning bid largely in line with expectations. The cargo will be exported from Japan’s Kanto region under December contracts, with final loading scheduled by January 31. The shipment is expected to head to Vietnam. The exchange rate stands at $1 is equal to JPY 156.74.

However, several participants noted that the H2 Kanto tender may not reflect regular spot trade, as its superior quality typically commands a premium.

Domestic updates

In Vietnam, domestic HMS scrap (3-6 mm) bids were reported at VND 7,700-8,800/kg delivered to mills in the southern region on December 12, excluding VAT.

For the northern region, bids were higher, heard at VND 8,350-9,200/kg delivered to mills, also excluding VAT, reflecting regional demand differences.

Outlook