Vietnam: Imported scrap trade picks up from US as offers fall

Bulk imported scrap prices into Vietnam dropped by $5-10/tonne (t) vis-à-vis the levels seen towards the beginning of last week. Trading activities have improved following a decline in offers. Nearly two to three bulk US scrap cargoes were booked by Vietnam-based steel mills last week at around $510-515/t CFR, SteelMint confirmed from sources.

Fresh offers for bulk Japanese H2 scrap are being quoted at $500/t CFR Vietnam, lower by $10/t w-o-w. However, few bids were even heard at $495/t CFR.

Vietnam market updates

• Billet export offers fall w-o-w: The BF-route billet offers from Vietnam dropped sharply by $20/t, on a w-o-w basis, amidst the volatile rebar futures market. According to SteelMint sources, BF-route offers are at $650/t FoB, while IF-route offers are at around $645/t FoB. Bearish market sentiments in China kept Vietnam’s billet prices on the lower side.
• Steel sales drop in May’21: Sales of steel across all categories reached 2.47 million tonnes (mn t), down by 8.42% compared to Apr’21. Production of steel reached 2.92 mn t, increasing by 3.53% over the previous month and by 40% over the same period in 2020.

Imported scrap offers to Indonesia drop: Imported scrap offers into Indonesia fell by $5-10/t w-o-w. However, demand in the country remained on the higher side amidst active Chinese buying throughout the week.

Currently, the most preferred Hong Kong-origin PNS grade scrap prices are at $515-520/t CFR, Jakarta. The same for shredded 211 stands at $505/t CFR, Jakarta, respectively.

Imported scrap offers into Thailand firm: Offers for HMS 1&2 (80:20) from Central America origin remained unchanged at around $415-420/t CFR Thailand levels last week. However, no deal has been reported due to bid-offer disparities. Indicative imported billet offers into the country stood at $680/t CFR from Indonesia and Vietnam.

Thailand’s ferrous scrap imports were recorded at 0.14 mn t in May’21 against 0.11 mn t seen in Apr’21, up by 27% m-o-m. Notably, on a yearly basis, the country witnessed a significant rise by 133% against 0.06 mn t in May’20, as per SteelMint record. Australia was the largest exporter followed by the US and Japan. Higher auto sales boosted scrap imports. In May’21, car production was recorded at 140,168 units, an increase of 150%. Sales were recorded at 55,942 units, an increase of 38.4%.

Taiwan: Imported scrap offers into Taiwan remained unchanged this week. Offers for HMS 1&2 (80:20) were unchanged at $440-445/t CFR Kaohsiung levels.