Vietnam: Imported scrap offers rise on bullish market sentiments

Vietnam’s imported scrap market has witnessed a surge in offers on bullish sentiments. SteelMint’s assessment for Japanese bulk H2 moved up to around $530/tonne (t) CFR Vietnam, up by $20-25/t w-o-w. However, no deals have been concluded at the cited offers, sources told SteelMint.

But, due to higher price offers from Japan, mills have started booking scrap of Australian and US origin, highlighted players.

Meanwhile, the US-origin bulk HMS offers moved up too. Price assessment for bulk US-origin HMS 1&2 (80:20) are at $515-520/t CFR Vietnam levels, up by $5/t w-o-w.

Vietnam’s domestic scrap offers up: Domestic ferrous scrap prices in Vietnam have increased by around $5/t this week, as per SteelMint’s assessment. The easing of Covid-19 lockdown restrictions in the country from the beginning of this month has resulted in improved buying enquiries.

• The procurement price for H1 grade scrap stands at VND 12,300/kg ($535/t), while VND 12,000/kg ($522/t) is the price for H2 scrap.
• Domestic billet (induction furnace-route) offers were at around VND 15,500-15,550/kg exw ($674-676/t), up w-o-w.

Vietnam billet export prices increase: Vietnam’s billet export offers rose this week. According to SteelMint sources, BF-route billet offers stand at $730/tonne (t), FOB Vietnam, up by $40/t weekly. However, no deals were heard to have been concluded this week as the market awaited clarity on prices post-the Chinese holidays.

Other SE market highlights

• Thailand’s imported scrap offers climb up $10/t w-o-w: Imported scrap offers into Thailand rose last week. However, few deals were recorded at these offers. Central America-origin HMS 1&2 (80:20) stands at $455/t CFR, up by $10-15/t w-o-w.
• Taiwan’s scrap offers are largely stable: Fresh imported scrap offers for US-origin HMS 1&2 (80:20) are at $475/t CFR Taichung, while the shredded 211 is being offered at $510-515/t CFR levels, up by a dollar.
• Indonesian buyers in wait-and-watch mode: Owing to lack of clarity in prices, end-users’ are maintaining silence. Australia-origin HMS1 scrap is being quoted at $520-525/t CFR Jakarta, stable w-o-w. However, US-origin PNS offers are at $535-540/t CFR, Jakarta.

Indonesia, an emerging player in the seaborne ferrous scrap market, saw imports decreasing by 17%, m-o-m, in Aug’21. The country imported 0.15 mn t of scrap in August as against 0.18 mn t in July, as per SteelMint data. Australia was the largest supplier with 64,979 t followed by Hong Kong and the UK with 41,364 t and 11,005 t, respectively.