Vietnam’s imported scrap trade remained subdued for yet another month. However, prices continue to decline to over 18 month-lows. Continuous heavy rainfall in many parts of the country and sluggish finished and semi-finished steel demand kept market sentiments bearish. For instance, Vietnam’s BF-grade billet export offers stood at around $500/t FOB, a w-o-w fall of around $20/t due to weak demand in the domestic market.
Steel producers are still cautious due to the unstable economy, low finished steel demand, and banking problems, SteelMint learned. The limited credit availability from banks to buyers kept the imported scrap market dull.
- Indicative bulk H2 offers from Japan are at $370-375/t CFR, down further $10-15/t w-o-w.
- In comparison, US-origin bulk cargoes are heard to have been booked at $360-365/t CFR levels.
Mills prefer domestic scrap to meet urgent needs: Domestic steel mills (especially IF) preferred to buy domestic material as procurement prices for domestic scrap remained at workable levels. Domestic H1 and H2 grades are at VND 8,800/kg ($382/t) and VND 8,500/kg ($370/t), respectively. Prices have come down to VND 900/Kg ($39/t) w-o-w.
Overview of other SE Asian scrap markets
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- Thailand: SteelMint’s assessment for Central America-origin HMS 1&2 (70:30) was assessed at $320/t CFR Thailand, while offers for shredded are at around $390-400/t CFR levels. However, trade activities remained slow.
- Indonesia: Imported scrap offers for the most preferred oversized PNS grade from Hong Kong were at $425/t CFR Jakarta.
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