Vietnam: Imported scrap prices continue to dip on subdued demand, lower steel prices

Imported scrap offers to Vietnam continued to fall for the straight fourth week of the month. Limited demand and sufficient scrap supply led to a drop in imported scrap offers. However, trade remained slow as buyers halted, awaiting a further price correction to match the lower raw material and finished steel prices.

On the other hand, Japanese scrap suppliers have lowered their offers significantly to $590-600/t levels for bulk H2, down around $15/t w-o-w.

Offers for US-origin bulk HMS 1&2 (80:20) are now being quoted at $600/t levels. Deals are continuing to happen at a slow pace. Prices have been corrected by $15/t w-o-w.

The country recorded imports of 0.29 mnt of ferrous scrap in March 2022 against 0.31 mnt a month ago, a decrease of 6% m-o-m. On a y-o-y basis too, the country’s imports fell by 47% from 0.55 mnt in March 2021, as per data maintained with SteelMint. Japan continued to be the largest supplier at 0.1 mnt followed by the US with 0.06 mnt. The rising Covid cases and Tet holidays were the main reasons behind the subdued market and limited imports.

However, increased steel consumption, coupled with new infrastructure projects, involving civil construction, supported scrap imports.

Vietnam’s billets export offers down: Vietnam’s BF-route billets export offers stood at $730/t FOB, down $20/t w-o-w. Weaker market sentiments continue to weigh down offers. However, no deals were heard concluded this week even at comparatively lower offers.

Overview of other SE Asian markets 

• Thailand: Imported scrap offers fell further in a recent deal, a source confirmed to SteelMint. Around 1,500 t of Central America-origin HMS 1&2 (80:20) in containers were booked at $540/t CFR LCB. Another deal for 1,000 t of HMS 1&2 (60:40) of similar origin was booked at $525/t CFR basis. Market sources expect prices to correct further this week given the global decline in prices.
• Indonesia: Fresh offers for HMS 1&2 (80:20) were cited at $570/t CFR levels. However, trade activities remained low while the most preferred grade (PNS), plates, and structural remained stagnant during last week. PNS from Hong Kong and Singapore are being offered at $610/t CFR Jakarta.