Global ferrous scrap market has slowed down towards the year-end, witnessing a smaller number of active participants in the market. Most of the yards in major supplying countries have already closed for the winter holidays which is pushing up the prices. In Vietnam, few deals were reported at increased offers.
Vietnam-based steel mills have booked deep-sea bulk scrap cargo from US-based scrap suppliers, sources have reported to SteelMint. In a confirmed deal heard, 32,000 t of HMS 1&2 (80:20) has been booked at $475/t CFR basis. The booking was made towards the end of last week. Another deal was heard to have concluded at $478/t CFR Vietnam basis.
Bulk Japanese scrap export prices to Vietnam have increased further last week. A total of around $115 hike has been registered during the last one month. SteelMint’s assessment for Japanese H2 stands at $470/t CFR Vietnam basis, up by $10 w-o-w. However, deals were not reported at these levels. While assessment for USA origin bulk HMS 1&2 (80:20) stands steady at $480/t CFR Vietnam level.
Despite pandemic Vietnam’s GDP increases- Vietnam’s economic growth accelerated towards the closing of the year as overseas exports and manufactures have shown signs of coming out from the pandemic slump. VSA (Vietnam Steel Association) is expected to report economic growth of 2.91 % in CY’20, witnessing the slowest growth rate in more than 30 years as the country battled the coronavirus pandemic. The Government has set a target of 6.5% GDP growth in CY’21.
Market insiders in hurry to complete registration in Indonesia- Christmas week witnessed subdued activity in the Indonesian ferrous scrap market. Imported scrap offers were much higher than the buying price of mills. Imported scrap offers have increased last week by $20-30 as compared to the preceding week. Meanwhile, Indonesian mills are in a hurry to complete the registration formalities to get the new import license. If a supplier fails to register and does not obtain the export certificate then from the start of next year, he will not be allowed to ship to Indonesia, highlighted an Indonesian trade source.
Recent offers-
- PNS in 20 ft container: $440 – 450/t CFR Jakarta
- Busheling in 20 ft container: $450 – 460/t CFR Jakarta
- Shredded 20 ft container: $435 – 440/t CFR Jakarta
Limited trades on high offers in Thailand- Central American HMS 1&2 (80:20) offers have climbed further and currently stands at $400-405/t CFR Thailand level. However, limited deals have been witnessed at these levels.
Ferrous scrap imports drop marginally in Nov ’20- The country’s scrap imports witnessed a drop of 8% m-o-m to 0.11 mn t in Nov’20 as compared to 0.12 mn t a month ago. Whereas, on yearly basis, scrap imports have increased by 38% as compared to the corresponding months a year ago. Japan continued to be the largest scrap exporter to Thailand as it exported 14,785 t of scrap, up by 13% m-o-m, followed by USA, as per customs data maintained with SteelMint.
Thai automotive production rose in Nov’20- A total number of 172,455 cars were produced in Nov’20, registering a hike of 15.46 % m-o-m and 11.92 % y-o-y, according to the FTI (Federation of Thai Industries).
Trade sources expect global scrap trades to slow down ahead of the New year holidays.
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