Japanese scrap suppliers have lifted offers for Vietnam after seeing higher than expected bids in the Kanto tender. Japan’s scrap export price driver, the monthly Kanto Tetsugen ferrous scrap export tender for Sept’21, was concluded on 9 Sept’21. A total of 20,000 tonnes (t) of Japanese H2 scrap was awarded at an average price of JPY 46,260/t ($420/t) FAS, SteelMint learnt from sources.
Notably, Vietnam remained the only buyer this month in the Kanto scrap export tender and bids were higher compared to the prevailing market prices.
SteelMint’s assessment for Japanese bulk H2 moved up to around $470-475/t CFR Vietnam, up by $5-10/t w-o-w while bids were at around $460/t CFR levels. However, offer prices were largely firm throughout the week.
Meanwhile, the US-origin bulk HMS offers too inched down on limited demand. Currently, offers for HMS 1&2 (80:20) are at $495-500/t CFR Vietnam levels, down by $5/ w-o-w.
Market players have waited for a long time from last one month since the lockdown was imposed. Hence, with expectations of easing lockdown in the coming days, trading activities are likely to pick up in the near term, SteelMint understands.
Vietnam’s domestic scrap prices up: Domestic scrap prices edged up on limited collection as lockdown restrictions in Vietnam are yet to be lifted. If local authorities lift restrictions by 21 Sept’21 and construction activities resume, domestic re-bar prices may rise, a reliable Vietnamese market source said.
- Domestic ferrous scrap prices in Vietnam moved up w-o-w. The new purchase price for H1 and H2 scrap stands at VND 12,000/kg ($522/t) and VND 11,700/kg ($509/t) respectively.
- Domestic billet (induction furnace-route) offers were at around VND 14,500-14,550/kg exw ($630-635/t), up w-o-w.
- Domestic rebar prices too moved up following increased raw material prices. The lowest rebar price was heard at VND 15,800/kg exw last week. However, only a few mills are ready to sell at these levels. The average selling price for domestic rebar is at VND 16,000/kg exw.
Vietnam billet export offers rise on improved Chinese buying: Vietnam’s mills remained active in the exports market last week. BF-route billet offers from the country increased by around $30-35/t on a weekly basis. According to SteelMint sources, BF-billet offers are at around $660-665/t FoB Vietnam. A Vietnam-based mill concluded an export deal for 20,000 tonnes of BF-billets to China at $660/t FOB (equivalent to $690/t CFR). Another deal from a Vietnamese mill was heard to have been concluded at $665/t FOB (equivalent to $700/t CFR). Billets demand has increased after the Chinese market rebounded, SteelMint learnt.
Market highlights of other South East Asian countries
- Indonesian scrap prices up: Imported scrap prices into Indonesia saw an uptick last week as prices for the most preferred UK-origin PNS scrap are being quoted at $510-512/t CFR levels. Some decent deals were registered at these levels. Meanwhile, Australia-origin HMS 1&2 (80:20) is being offered at around $460/t CFR. Limited deals have been reported at these levels.
- Thailand’s imported scrap offers up: Imported scrap offers into Thailand increased last week. Central America-origin HMS 1&2 (80:20) stands at $430/t CFR, up by $8-10/t w-o-w.
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