Imported scrap prices into Vietnam continued to decline over April. Demand from the buyers and end-users is limited due to subdued steel demand in the domestic market and lack of price clarity in the overseas markets amidst holidays.
Furthermore, the Japanese market was mostly closed last week due to the Golden Week holidays. Suppliers anticipate clearer picture after the markets resume and the Kanto tender result are announced next week. Japan’s monthly Kanto Tetsugen ferrous scrap export tender has been scheduled for 11 May 2022, sources informed SteelMint. Last month a total of 10,000 t of scrap was awarded and the average price for H2 scrap stood at around JPY 67,010/t ($513/t) FAS, higher by JPY 3,500 ($27) m-o-m, SteelMint learnt from sources.
Fresh offers for Japanese H2 scrap dropped further by $30/t to $550/t CFR Vietnam over a week. Buyers are still holding back as prices continue to fall.
Bulk offers for HMS 1&2 (80:20) from the US were at $545/t CFR, down $25/t from last week, on account of less interest from Vietnamese buyers.
Vietnam’s billet export offers unchanged: Vietnam’s BF-route billet export offers stood at $710/t FOB, unchanged, w-o-w. Weaker market sentiments such as falling prices of raw materials and domestic scrap continue to weigh down offers. However, no deals were heard and concluded this week.
Other SE Asia market overview
- Indonesia: The most preferred Hong Kong-origin PNS was being offered at $595/t CFR levels. Australia-origin mixed PNS was offered at $585/t CFR levels. However, people showed less interest in booking fresh cargoes. New Zealand-origin HMS 1&2 (80:20) was being offered at $560/t CFR levels.
- Thailand: As the market resumes after the holidays’ imported scrap offers are expected to fall further as bids for the Central America-origin HMS 1&2 (70:30) are comparatively lower at $470-475/t CFR levels. Offers are still higher than the buyers’ expectations which is limiting trade.
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