The imported scrap trade slowed down last week. However, prices to Vietnam continued to move up. Steel mills are likely to remain active in the near term as demand for billets from China has increased. The increased freight rates, however, kept market activities slow.
Japanese bulk H2 is being quoted at $540/t CFR , while the bid levels remain low at $525-530/t CFR Vietnam. The discrepancy in the bid and offer remained a major concern in an already slow market . Nevertheless, the Japanese suppliers were active in domestic deals.
On the other hand, no firm offers were heard from the US, while the price indications were at $525-530/t CFR Vietnam levels.
Vietnam’s domestic market overview
- Domestic scrap prices inch up: Higher demand has increased domestic scrap prices. Domestic scrap is mainly supplied to induction furnaces. The procurement price for H1 grade scrap stands at VND 12,400/kg ($540/t), while VND 12,100/kg ($526/t) is the price for H2 scrap, moving up by VND 100/t w-o-w.
- Billet prices unchanged: Induction furnace-route (IF) billets are mainly used for rolling of deformed bars used in low-cost housing construction. The peak season for consumption of low-quality building construction material is passing, while demand has slowed down . Domestic billet (induction furnace-route) offers were at around VND 15,500-15,550/kg exw ($674-676/t), unchanged w-o-w.
- Rebar prices up by VND 200/t w-o-w: Domestic construction sector is performing poorly. Additionally, public construction is limited due to financial difficulties. Yet, domestic rebar prices have increased by VND 200/t to VND 16,250-16,450/Kg ($705-715/t).
Ferrous scrap imports to Vietnam rise 6% m-o-m in Sept’21: Vietnam’s ferrous scrap imports were recorded at 0.35 million tonnes (mn t) in Sept’21. An increase of 6% m-o-m vis-a-vis 0.33 mn t in Aug’21. The US was the largest supplier followed by Japan and Australia in Sept’21. Ferrous scrap import bookings rose slightly with minimal trade volumes observed as against last month owing to Chinese increased buying interest in billets which has somehow supported the sentiments.
However, on a y-o-y basis, import volumes were down by 26% from 0.47 in Sept’20.
Other SE market highlights
- Indonesia: Imported scrap offers of UK-origin PNS were at $545/t CFR Jakarta towards last weekend while Australia-originated containerized shredded was offered at $535/t CFR Jakarta levels. However, the deals remained limited.
- Thailand: The most preferred Central America-origin HMS 1&2 (80:20) was offered at $455-460/t CFR levels. However, from the same origin, shredded is being offered at $520/t CFR levels. However, limited deals were heard at these levels.
- Taiwan: Imported scrap offers inchedup as US-origin HMS 1&2 (80:20) was cited at $475-480/t CFR Taichung. Very few deals are heard to have been concluded at these levels. Steel mills preferred domestically source scrap and domestic prices too continued to increase.
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