Imported scrap offers into Vietnam have dropped further by around $10/tonne (t) against the preceding week. Falling global scrap prices on limited inquiries resulted in a fall in imported scrap prices into Vietnam. On the other hand, Vietnam’s capital, Hanoi, continues to sea hike in the number of Covid cases, which has also impacted trade. The government has extended the lockdown for another 15 days till 22 Aug’21, sources told SteelMint.
Fresh offers for Japanese bulk H2 are being quoted at $470-480/t CFR Vietnam levels. “Last Friday, one deal was concluded for around 3,000t of imported Japanese H2 at $490/t CFR,” said a Japanese scrap trader.
No firm offers were reported for US-origin bulk HMS 1&2 (80:20). However, price indications stand at $505/t, CFR Vietnam.
“At the end of Aug, mills are expected to raise prices of finished steel products.Currently, demand is weak in the market. Additionally, the Chinese market is down and thus prices are less likely to improve,” said a Vietnam-based source.
Vietnam’s domestic scrap prices firm: Domestic steel demand remained slow which has prevented domestic scrap prices from moving upwards despite lower collection rates and logistics constraints between provinces.
- Local scrap prices remained untouched at VND 11,800/kg ($515/t) and 11,500/kg ($500/t) for H1 scrap and H2 grade respectively.
- Domestic rebar prices remained unchanged for yet another week at VND 15,900-16,050/kg exw. Due to lockdown, construction activities in main cities are not being allowed which has dented demand.
- Domestic billet (induction furnace route) producers were offering at VND 14,900/kg exw, but rolling mill players were heard to be quoting bids at VND 14,550-14,600/kg included delivery.
- Vietnam’s BF-route billet export offers were heard at around $685-690/t FoB Vietnam. Also, an IF -route billet export deal from Vietnam was heard to have been concluded at $695/t CFR China for Sept’21 shipments.
Market highlights of other SE Asian countries
- Indonesian market mostly quiet for yet another week: Another prominent South East Asian scrap buyer, Indonesia, remained mostly quiet last week.
- Thailand’s imported scrap trade slows down: Thailand’s imported scrap tradeslowed down, while offers for HMS 1&2 (80:20) for Central America-origin were at $425/t CFR, lower by $5/t against last week, sources confirmed to SteelMint.
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