SE Asia: Imported scrap trades turn slow at increased offers

Southeast Asian steel mills remained quiet, with very few deals getting reported at increased offers.

Japanese scrap offers for Vietnam up by $5-10: Vietnamese scrap buyers remained cautious to book new slots for late Oct-Nov shipments, due to successive hike in imported scrap prices. While, mid-size mills are now in wait and watch mood, before making a new contract. High-level scrap prices kept many buyers away from the imported scrap market. Japanese scrap export offers have moved up after a considerable hike in Kanto tender results last week.

• SteelMint’s assessment for Japanese bulk H2 stands at $310-315/t, CFR Vietnam level, up by around $5-10/t against last week’s report. Few trades were reported at $310 level.
• Suppliers have quoted around $313-320/t for Japanese H2, while buyers’ price idea remained at $310-315/t level.
• Although very limited bulk offers for USA origin HMS (80:20) in bulk are reported, but SteelMint’s assessment stands at $315/t, CFR.

Indonesia trades increase gradually: Offers to Indonesia slightly up w-o-w basis, while trades have increased gradually. In the latest deal concluded a decent quantity of UK origin PNS has booked at $320/t CFR Jakarta basis.

The country’s  steel consumption is expected to increase because government investment in infrastructure projects and economic recovery will boost demand growth in the post-Covid period.

Thailand’s dull finished steel demand limits scrap purchases: Steel mills opted to wait and see for better offer price, as offers have increased on weekly basis. The construction and automotive sectors were hit particularly hard by the coronavirus outbreak. Construction projects were delayed, while car factories suspended operations during the temporary shutdown.

• Offers from Central America for HMS scrap in containers stand at $270-275/t CFR Thailand; up by $5 as compared to last week. Few bookings were reported at below $270 level last week.
• Australian origin HMS 1&2 (80:20) is being offered at $290-295/t CFR level, up by $5/t w-o-w basis. While shredded scrap is being offered at $315-320/t CFR Thailand level.