Imported scrap prices in Vietnam have cooled down after witnessing a sharp rally. Japanese bulk H2 offers are now heard at $525-530/t CFR Vietnam basis, a decrease of $20-25/t w-o-w. However, no firm deals were heard as buyers were bidding still lower than the current offers.
Tracking the drop in imported scrap offers, domestic scrap prices have also lost momentum. The procurement prices have come down this week by VND 500/Kg ($21/t) for H1 grade to VND 11,900/kg ($517/t) while H2 scrap is being offered at VND 11,600/kg ($504/t).
Japan’s monthly Kanto Tetsugen scrap export tender has been scheduled for 10 Nov’21, trade sources informed SteelMint. About 20,000 t of Japanese H2 grade scrap is usually auctioned via the export tender every month, which serves as the benchmark for the Japanese scrap export market. Market participants seem to be waiting for the tender outcome to get clarity on prices. Last month, the tender was awarded at an average price of JPY 53,213/t ($469/t) FAS.
Vietnam’s billets exports market remained less active this week. According to SteelMint sources, the country’s BF-route offers were at $640/t FOB, a sharp drop of around $45/t w-o-w. The drop in offers was largely on the back of steep decline in Chinese rebar futures on weaker demand outlook.
Despite slow rebar consumption, domestic rebar prices remained unchanged on a weekly basis at VND 16,600-16,650/kg exw ($722-724/t).
Overview of other South East Asian markets
- The most preferred Central America-origin HMS 1&2 (80:20) fell against last week to $460-470/t CFR Thailand levels, down by $5-10/t w-o-w.
- Indonesia’s domestic P&S prices dropped from IDR 8,100/kg to IDR 7,800/kg
Leave a Reply