Imported scrap prices into Vietnam softened this week amid low buying interest from downstream users and bearish steel market sentiments. Fresh offers for Japanese bulk H2 are at $610/t CFR levels, lower by $10/t w-o-w. Additionally, the increased freight rates from Japan to Vietnam kept buyers away from the market.
However, the lower offers are expected to inject some interest back into the market.
Vietnam mills remained less active last week amidst prevailing holidays earlier in the week and were seen awaiting outcome of Japan’s monthly Kanto scrap export tender.
As a result, scrap from the US was assumed to be more competitive than the Japanese material. Offers for bulk US HMS are heard at around $625/t CFR, down by $15/t w-o-w. The country is likely to resume trade activity shortly.
Vietnam’s billets export offers down: Vietnam’s blast furnace (BF)-route billets export offers stood at $750/t FOB, down $20/t, w-o-w. However, no deal was heard concluded this week.
Vietnam’s finished steel production reached 3.338 mnt, up 29.16% in March, 2022 as compared to February, 2022 and 6.8% over the same period in 2021. Sales of steel of all kinds reached 3,123 mnt, up 21.3% in March 2022 over the previous month and 2.4% over the same period.
Overview of other SE Asian markets
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- Indonesia: Fresh offers for the most preferred grade, plates, and structural (PNS) increased further. PNS from Hong Kong and Singapore are being offered at $610-615/t CFR Jakarta, while shredded are being quoted at $612/t CFR levels.
- Thailand: Offers were heard at around at $535/t CFR levels for Central America’s HMS 1&2 (70:30). However, fresh offers are yet to be quoted after the holidays.
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