Prices for imported scrap in Vietnam have surged. This surge can be attributed to bullish market sentiments in Turkiye. However, buyers in the country could not source enough raw materials amid “weak fundamentals” in the finished long steel market.
The recent offers for USA-origin bulk HMS 1&2 (80:20) scrap were at $465-470/t CFR Vietnam last week, registering a sharp hike of over $10/t w-o-w. Most suppliers have held their offers, waiting for a further hike due to active transactions concluded by Turkish mills.
The Vietnamese market has been quiet in recent weeks. Mills are waiting for clarity from the Japanese market amid low bids recorded from South Korea’s Hyundai Steel for Japanese material during the last week.
Hyundai Steel has reduced price of Japanese scrap by JPY 1,000/t($7/t) after almost a three weeks’ gap. After revision, the company’s bids for H2 scrap stand at JPY 51,000/t ($378/t), and those for HS are at JPY 54,000/t ($400/t) FOB.
Meanwhile, traders and suppliers are expecting buyers to return to the market.
In contrast, mills are actively looking for discounts from domestic scrap suppliers due to an inadequate demand for finished and semi-finished steel products, SteelMint noted.
Vietnam’s billets export offers remain unchanged w-o-w: Vietnam’s BF-grade billets export offers remained stable at $630/t FOB this week. Prolonged inflation and high-interest rates put pressure on the real estate industry.
Overview of other South Asian scrap markets
- Thailand: Thailand’s scrap market was mostly quiet and no major deals have been recorded in the last week. The shredded price was assessed at $445/t CFR levels, SteelMint noted.
- Indonesia: Offers for imported HMS (90:10) scrap were at $420-425/t CFR JKT, slightly down w-o-w.
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