Vietnam based steel mills have turned towards US deep-sea cargo bookings due to the absence of firm offers from Japan. In a confirmed trade heard towards the end of last week, a Vietnam based steel mill has booked 30,000 t of US origin bulk mix scrap cargo. The deal was concluded at $442/t CFR for Shredded and $437/t CFR levels for HMS, sources have confirmed to SteelMint.
Japanese scrap suppliers are hesitant to quote fresh offers due to volatility in freight rates. Indicative offers for H2 grade scrap in bulk are now available at $435/t CFR Vietnam levels.
SteelMint’s assessment for Japanese H2 bulk scrap cargo stands at 435$/t CFR Vietnam basis, moving up slightly by $5 w-o-w.
Domestic scrap prices in Vietnam rebound: Domestic scrap prices went up by VND 200/kg last week as compared to the preceding week. H2 grade scrap price now stands at VND 9,500/kg ($413) exw against VND 9,300/kg in the preceding week. Whereas another grade of H1 is now available at VND 9,800/t kg ($426) basis, mills are expecting that prices will go up to VND 10,000/kg for H1 grade scrap.
Increase in billet import inquiries from China has supported the global billet market. Thus, Vietnam mills have remained active in concluding billet export deals.
Indonesia’s imported scrap market remains silent: Indonesia scrap offers remained firm w-o-w. Steel mills preferred to wait and watch the market situation, which led to complete silence in the imported scrap market. Prices continue to be stable due to the black-out period at end April-May. Meanwhile, buyers are focusing on buying materials from nearby origin.
Indicative imported scrap prices:
- PNS: Fresh offers is being quoted at $440-445/t CFR Jakarta
- Busheling: $450-460/t CFR Jakarta
Buyers are keen to book fresh cargo in Thailand: Imported scrap buyers were active last week. Buyers were quiet as prices were continually moving down. However, now due to low inventory, Thailand’s scrap buyers were keen to pay even $5 higher than offers for fresh imported scrap booking. Central America origin HMS 1&2 (80:20) is now being offered at $375-380/t CFR Thailand basis, but very few offers were made due to global freight rates.
Disparity between bids and offers keeps trades limited in Taiwan: Disparity between offers and bids price kept Taiwan imported scrap prices low earlier in the week. However, imported scrap prices are likely to go up which is around $400 /t CFR current workable price CFR for HMS 1&2 (80:20).
Outlook: Imported scrap prices in South East Asia market are likely to rebound shortly as global scrap prices inch up in recent trades.
Leave a Reply