- Vietnam buying cautious ahead of holiday slowdown
- Japan scrap exports find support from Vietnam amid firm prices
Vietnam’s imported ferrous scrap prices remained firm in the first week of February, supported by JPY-led cost pressures, limited Japanese H2 availability, and steady deep-sea offers. However, buying activity stayed cautious ahead of the Lunar New Year, with mills refraining from aggressive restocking while awaiting clearer price direction.
Weekly assessments
- Japanese H2 scrap was at $335/t CFR Vietnam, up by $8/t w-o-w.
- Japan’s H2 scrap at JPY 45,500/t ($290/t) FOB Tokyo Bay, up by JPY 700/t ($4/t) w-o-w.
- US-origin HMS 80:20 bulk stood at $355/t CFR Vietnam, up by $8/t w-o-w.
Vietnam scrap prices firm on limited offers, cautious buying
Vietnam’s imported scrap market stayed firm in early February, supported by tight Japanese H2 availability and steady pre-holiday offers. Indicative H2 prices were heard at $330-335/t CFR, with some suppliers testing $335/t CFR and above, market participants said.
A Japan-based participant stated that offers were steady w-o-w amid currency moves and tight supply. Vietnamese mills noted prices stayed high, but buying remained cautious as mills awaited the Kanto tender, with some buyers considering billets as an alternative.
US-origin HMS 80:20 offers climbed to about $360/t CFR Vietnam on tighter US supply, but bids lagged near $335/t, keeping gaps wide.
A market participant noted a 5,000 t H2 cargo sold at $330/t CFR Vietnam for late-February delivery, adding that prices are unlikely to rise further as traders await direction from the 10 February Kanto tender.
Japan scrap export prices rise on weaker JPY, firm expectations
BigMint assessed Japan’s H2 scrap at JPY 45,500/t ($290/t) FOB Tokyo Bay, up by JPY 700/t ($4/t) w-o-w, supported by a weaker JPY and firm overseas offer expectations.
Domestic H2 collection prices in Japan were heard rangebound at JPY 43,500-44,500/t ($277-284/t) FAS, indicating stable local fundamentals despite limited export availability. Market participants commented Japanese suppliers were not aggressive in concluding deals, preferring to wait for the outcome of the upcoming Kanto tender.
Export sentiment was further supported by firm deep-sea pricing and tight supply conditions globally. In the Turkish market, HMS 80:20 was assessed at $378/t CFR, reflecting steady cost support amid thin trading.
Outlook
East Asian ferrous scrap prices are expected to remain firm but range-bound in the near term. JPY-led cost support, tight supply, and steady buying interest from Vietnam should underpin prices, while wide bid-offer gaps, Lunar New Year caution, and alternative metallic options may limit upside momentum.
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