Vietnam: Imported scrap market remains subdued ahead of Tet holidays

Vietnam’s imported scrap market has been mostly quiet for yet another week amid bid-offer disparity which kept buyers on the sidelines. However, the market remained subdued due to limited finished steel demand. 

Steel market sentiments are mainly subdued ahead of the Tet holidays which will last nine days starting from 20 January, 2023.

Assessments for US-origin bulk offers are now at $410-415/t CFR, unchanged w-o-w.

Vietnamese steelmakers are likely to remain out of the market this month and may resume activities only after Tet and the Lunar New Year holidays. However, prices may remain high due to low material availability amid low scrap generation as US/Europe-based suppliers and recyclers have just returned to the market after the winter holidays.

Further, active Turkish bulk scrap bookings from the US and Europe since the beginning of the New Year at increased prices have kept imported scrap prices high.

SteelMint’s assessment for Japanese H2 material is $410/t CFR, unchanged w-o-w. However, buyers are waiting for the outcome of Japan’s Kanto scrap export tender, which is scheduled for 12 January. Last month, around 13,000 t of scrap was awarded, and the average price for H2 scrap stood at around JPY 47,568/t ($349/t) FAS in the Kanto Tetsugen tender.

Vietnam’s billet export offers inch up: Vietnam’s BF-grade billet export offers increased marginally by around $5/t as against last week, followed by a hike in the country’s scrap offers. Current offers are at $565/t FOB. However, no deals have been reported so far at current offers.

South East Asia market overview 

• Indonesia: Following global cues, imported scrap prices rose in Indonesia’s scrap market. HMS 1 is assessed at $400/t, whereas PNS/rebar prices were quoted at $430/t CFR.
• Taiwan: Imported scrap offers for HMS 1&2 (80:20) are at $370-380/t CFR.
• Thailand: Scrap import prices in Thailand have increased slightly. HMS 1&2 (80:20) stands at $385/t CFR and shredded scrap is at $410/t CFR.

Outlook: Market participants believe prices of imported scrap may rise further in Vietnam, following bullish sentiments in the international market and expectations of healthier demand for finished products after the Tet and  Lunar New Year holidays.