- Mills cautious despite supportive currency moves
- Stable offers keep scrap prices capped
Vietnam’s imported scrap market remained rangebound during the week, as most offers were stable and a wide bid-offer gap limited deal activity. Restocking ahead of post-holiday production and supportive currency movements lent some support, but cautious buying sentiment and lack of urgency among mills capped near-term upside.
Weekly assessments
- Japanese H2 scrap was at $320/t CFR Vietnam, down by $2/t w-o-w
- US-origin HMS 80:20 bulk stood at $340/t CFR Vietnam, down by $2/t w-o-w
Market updates
H2 scrap offers in Vietnam were heard at $322-325/t CFR, with a few sellers testing higher levels near $330/t CFR. However, most market indications converged around $325/t CFR by mid-week. Bids were reported in the $318-320/t CFR range, though some lower indicative bids near $315-318/t CFR were also heard. Market participants stated that tradable values at around $320/t CFR and above were supported by firmer Japanese Kanto tender benchmarks.
Restocking activity among Vietnamese mills was described as normal, with some mills preparing for post-Tet (Vietnamese New Year) production. Another market participant stated that favourable exchange rates and the resumption of production after the holiday period could support near-term demand for imported scrap, though buyers were not in a rush to conclude deals.
The deep-sea bulk scrap market remained largely rangebound during the week amid stable offers and a wide bid-offer gap. US-origin HMS 80:20 offers were heard unchanged w-o-w at around $350/t CFR Vietnam, while bids were reported near $335-340/t CFR. East Asia HMS 80:20 at $342/t CFR, with Phu My as the basis port.
Outlook
Vietnam’s imported scrap market is expected to remain rangebound in the near term. While post-holiday production and supportive currency movements may aid demand, wide bid-offer gaps and cautious buying sentiment are likely to limit price upside.
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