Vietnam’s imported scrap market remained quiet for yet another week. Imported scrap prices declined continuously over the last four months. However, buyers believe that prices are yet to bottom out. Limited demand for finished steel from domestic and overseas buyers kept scrap bookings subdued.
Indicative offers for Japanese bulk H2 scrap were at $345/t CFR Vietnam, moving down significantly by $20-25/t from last week. Buyers in Vietnam opted for a wait-and-watch approach in order to get further discounts.
On the other hand, US-origin bulk cargoes are heard to have been booked at $345-350/t CFR levels, down by $10-15/t w-o-w.
Imported scrap prices are likely to remain dull for the next couple of weeks, owing to limited credit availability with banks, caused by an unstable economic situation. Meanwhile, the continuous decline in domestic scrap prices are likely to keep buyers active in the domestic market on cost effectiveness.
Vietnam’s billet export offers edge down w-o-w: Vietnam’s BF-grade billet export offers stood at around $495/t FOB, a w-o-w decrease of $5/t due to weak demand in the domestic market.
Overview of other SE Asian scrap markets
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- Thailand: Indicative offers for South American origin HMS 1&2 (70:30) were heard at $275/t CFR Thailand. Last week, around 1,000 t of HMS 1&2 (70:30) were booked at a $270/t CFR basis from America last weekend.
- Indonesia: Imported scrap offers for the most preferred oversized PNS grade from Australia were at $405/t CFR Jakarta.
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