Vietnam: Imported scrap offers surge following Kanto tender result

Imported scrap prices in SE Asian markets have risen to a new high as the key global scrap suppliers, the USA and Japan, have lifted offers post Russia’s invasion of Ukraine. Fresh Japanese offers soared to a new high after the monthly Kanto Tetsugen scrap export tender saw prices surging by $65/t m-o-m. The tender was concluded last week.   

A total of 10,000 tonnes (t) of scrap was awarded and the average price for H2 scrap stood at around JPY 63,510/t ($548/t) FAS, higher by JPY 7,665/t ($66/t) m-o-m in Mar’22, SteelMint learnt from sources. Japan’s winning bid price seems to have risen significantly as scrap prices have risen globally following the Russia-Ukraine war.

As a result, Vietnam and other SE Asian mills need to raise their bids in order to secure fresh inventory.

Fresh indicative offers for bulk Japanese H2 scrap are heard at around $625-630/t CFR Vietnam levels.

No firm offers were heard for US origin bulk cargoes; however, price indications were heard at around $690-700/t CFR.

Ferrous scrap imports rebound in Feb: Vietnam’s ferrous scrap imports rebounded by 94% to 0.31 million tonnes (mnt) m-o-m in Feb compared to 0.16 mnt in Jan. Japan was the largest supplier with 126,960 t, followed by the USA and Hong Kong with 76,900 t and 36,320 t respectively. Vietnam increased its ferrous scrap imports this month, as demand accelerated because of large public investments in civil works and infrastructure projects.

Vietnam’s billets export offers rise sharply: Vietnam’s BF-route billets export offers stood at $800/t FOB, a spike of around $80/t w-o-w. However, no deals were heard concluded this week. A steep hike in Japanese ferrous scrap prices following a surge in bids in the Kanto tender lifted production costs.

Overview of other SE Asian markets

High offers keep Thai buyers active: Increased offers from global suppliers kept Thai buyers active in booking fresh slots. Imported scrap prices from Central America have increased sharply by around $80-90/t over the last few weeks.

• Fresh offers for HMS 1&2 (70:30) in containers are offered at $520-525/t CFR Laem Chabang, witnessing a further hike of $40/t on a w-o-w basis.
• Around 5,000 t of Central America-origin HMS 1&2 (70:30) have been booked at $500/t CFR LCB basis earlier last week.

Indonesian scrap import prices continue to rise: Fresh offers for the most preferred grade, plate and structural (PNS), has increased further; however, trading is yet to pick up. Hong Kong-origin PNS is being offered at $575-580/t CFR Jakarta, up around $25/t w-o-w.