SteelMint learned from market participants that imported scrap markets in major South East Asian countries observed further downtrend on overall weak demand. Finish steel prices in Asian markets have dampened severely amid sharp plunge in Chinese products prices and rising supply in spot markets.
According to sources, Japanese domestic scrap prices continue downtrend which makes it most competitively priced in the international market for South East Asian buyers.
In Vietnamese market, only Japan and Hong Kong based scrap remained more viable while inquiries for other origin scrap heard very limited this week. No signs of pick up in domestic finish steel markets, more competitive billet prices and falling flat offers from major steelmakers like Formosa Steel, kept scrap importers away from buying despite decreased offers.
Offers for Japanese H2 heard in the range of USD 325-327/MT, CFR Phu My, down USD 3-5/MT as against last weeks’ report.
Hong Kong origin offers of HMS 1&2 (50:50) stands at around USD 320-322/MT, CFR Vietnam. While deep-sea HMS 1&2 (80:20) in containers was being offered at around USD 315-317/MT, CFR Hai Phong, down USD 5/MT as against last report.
With stricter inspection regulations importers remained less interested in containerized scrap trades. Spot demand in Vietnam dampened after the conclusion of bulk trades for Japanese scrap last week.
Approaching year-end festivities keep sentiments dull – Key scrap buyers in Southeast Asian countries such as Thailand, Indonesia and Malaysia have also started to slow down their steel purchases on approaching the end of the calendar year.
Market participants likely to go on vacation from the second-half of December onward while further outlook remains bearish on Lunar New Year holidays in early-February.
Key updates –
— According to SteelMint’s price assessment, USA origin HMS 1&2 (80:20) scrap stood around USD 335/MT, CFR Turkey as against USD 337-338/MT last report.
— Price assessment for USA origin HMS (80:20) in containers stood at USD 300-301/MT, CFR Taiwan.
— South East Asian billet import offers heard at USD 475-485/MT,CFR Thailand.
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