Vietnam: Imported scrap prices largely stable amid rising billet preference

• Fewer Japanese scrap offers amid JPY fluctuations
• Some SE Asian scrap supply being diverted to India

Imported ferrous scrap prices into Vietnam remained mostly stable w-o-w, with low buying interest due to the wide availability of cheaper billets. Suppliers maintained a bullish stance, attempting to raise offers, while buyers stayed cautious amid stable downstream product prices.

Vietnamese steelmakers actively sought cheaper imported billets from Indonesia last week, booking at least 80,000 t. Offers from a major Indonesian blast furnace mill were last heard at $430/t FOB Indonesia.

Although some EAF mills saw a gradual rise in scrap demand, most preferred cheaper billets and were reluctant to raise scrap bids.

Weekly assessments

• US-origin HMS 80:20 bulk was assessed at $335/t CFR Vietnam, stable w-o-w.
• Japanese H2 was assessed at $322/t CFR, Slight up by $2/t w-o-w.

Market commentary

A mill-side participant suggested offers for Japan-origin H2 scrap in bulk were heard at $325-330/t CFR. The tradable level was slightly lower at $320-322/t CFR, while bids stood at $318/t CFR, reflecting current market interest.

Meanwhile, US-origin HMS 80:20 in bulk was offered at $340-345/t CFR Vietnam, with indicative bids at $330-335/t CFR Vietnam.

A Vietnam-based trader noted, “Amid fluctuations in the Japanese yen, Vietnamese market participants observed fewer offers from Japanese sellers this week. Buyers are choosing to wait until next week.”

A Japanese supplier added that HS scrap offers softened to $350-355/t CFR, while bids remained at around $340/t CFR.

Outlook

Looking ahead, some sources expressed a slightly bearish sentiment for spot prices in Vietnam, suggesting there may be further room for a decline in the near term. Currently, some Southeast Asian scrap supply is being diverted to India, driven by improved demand from Indian buyers seeking quick shipments and premium-grade material.