Vietnam: Imported scrap offers from Japan fall by $10 on lower bids

Imported bulk scrap offers for Vietnam have decreased sharply amid lower bids from steel mills. Vietnamese steel mills turned active in Japanese scrap bookings after suppliers returned from holidays in early last weeks. However, still many buyers are in wait & watch mood, expecting that prices may fall further.

• SteelMint’s assessment for Japanese bulk H2 stands at $295/t, CFR Vietnam level, down by around $10-15/t against last week’s report. However, few traders have even quoted at $292/t CFR Vietnam level for Japanese H2.
• Few deals were concluded for Japanese H2 towards the closing of last week at around $295/t CFR to South Vietnam.
• SteelMint’s assessment for bulk HMS (80:20) offers from USA stands at $305/t, CFR.

Vietnam has recorded an increase in its monthly scrap imports by 28% m-o-m to 0.61 mn t in Aug’20. Interestingly, imports have reached an 11-months high in Aug ’20 since Sep’19, as per customs data maintained with SteelMint. Japan remained the largest scrap supplier to Vietnam with around 0.31 mn t of scrap, increasing by 24% m-o-m in Aug’20.

Indonesian imported scrap offers fall by $5-10: Imported scrap offers to Indonesia have dropped significantly in the last two weeks. Trades have slowed down as buyers remain optimistic about further price cuts.

• P&S offers in 20 ft containers have dropped by $5/t and currently stands at $315/t CFR Jakarta, while in 40ft containerised PNS is being offered at $310/t CFR Jakarta.
• Busheling scrap offers in 20 ft containers are at $320/t CFR Jakarta.

Domestic scrap remains a preference in Thailand: Thailand based steel mills comparatively remained less active in imported scrap bookings last week, due to continuous decrease in domestic scrap offers. Local scrap prices are heard around THB 9.6/kg (equivalent to $300 delivered), highlighted sources.

• Offers from South America for HMS 1&2 (80:20) scrap in containers stands at $275-280/t CFR Thailand, stable against last week
• Central American origin HMS 1&2 (80:20) is being offered at $265-270/t CFR level.