With recent bulk cargo bookings made from Japan and Hong Kong, imported scrap trade to Vietnam has gained momentum. Vietnamese scrap buyers were highly active in the market on improved demand with easing of lockdown restrictions.
Moreover, market activities have increased post-lockdown easing. Japanese scrap offers continue to move up due to a hike in domestic scrap demand.
- Vietnam-based mills have remained active in booking bulk scrap cargoes. In a bulk cargo booked earlier this week, 3,000 t of H2 grade scrap was booked at around $485/t CFR Vietnam. However, current offers are at $490/t CFR. Vietnamese buyers have booked two bulk cargoes from Hong Kong at $475/t CFR.
- Fresh offers for Japanese H2 are being quoted at $490-495/t CFR Vietnam levels. Limited deals are heard to have been concluded at these levels. However, inquiries for bulk cargoes have increased over the week.
- US-origin HMS 1&2 (80:20) bulk cargo offers have been cited at $500-505/t CFR Vietnam, up by $5-10/t w-o-w.
Vietnam domestic scrap prices up: Vietnam’s Hanoi city had reduced the lockdown level. Domestic construction projects are expected to resume in the coming days. However, workers had moved to their hometown and it will take 1-2 weeks for them to return to work, SteelMint learnt from a reliable market source.
- Domestic ferrous scrap prices in Vietnam have increased by $9/t w-o-w, as per SteelMint’s assessment. The procurement price for H1 grade scrap stands at VND 12,200/kg ($530/t), while VND 11,900/kg ($517/t) is the price that has been settled for H2 scrap.
- Domestic billet (induction furnace-route) offers are up further by VND 300/kg to around VND 14,900-14,950/kg exw ($/t).
- • Domestic rebar prices too moved up on the back of increasing raw material prices. Currently, rebar prices are at VND 16,050-16,100/kg exw last week.
Vietnam’s billet export offers unmoved: Vietnam’s BF-route billet export offers unchanged at $675/t, FOB ($720/t CFR and bids $705-710/t CFR) with no deals concluded last week as buyers are showing less interest at these levels.
Highlights of other South East Asian markets
- Indonesian scrap trade yet to pick up: Imported scrap trades yet to pick up, owing to a discrepancy in bids and offers. Hong Kong-origin PNS is being offered at $535-536/t CFR Jakarta levels.
- Thailand’s imported scrap offers inch up: Imported scrap offers into Thailand inched up last week. However, limited inquiries were recorded at increased offers. Central America-origin HMS 1&2 (80:20) stands at $435/t CFR.
- Taiwan’s scrap buyers likely to conclude deal: Imported scrap offers were heard to have moved up further. However, due to increasing demand and seasonal buying, activity has increased, Taiwan’s buyers are likely to book bulk cargoes in the near future. Fresh offers for Australia-origin HMS 1&2 (80:20) are at $465/t CFR Taichung, while the shredded 211 is being offered at $485/t CFR levels.
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