Amid heavy rainfall in many parts of Vietnam, imported scrap buyers desisted from booking fresh cargoes from overseas suppliers. Scrap prices, however, remain largely stable w-o-w. Meanwhile, a few mills opted for domestic material due to the need for prompt delivery as well as cost effectiveness.
Fresh offers for Japanese H2 bulk cargoes were at $390-400/t CFR, while buyers were bidding lower by around $25-30/t. Japanese suppliers likely to lower offers further on currency depreciation.
In contrast, no firm offers were heard for US-origin bulk cargoes.
Vietnam recorded ferrous scrap imports of 480,000 t in June as against 490,000 t a month ago, a marginal decrease of 2% m-o-m. The USA continued to be the largest supplier at 170,000 t followed by Japan at 150,000 t. On a y-o-y basis, the country’s imports fell 24% from 630,000 t in June, as per data maintained with SteelMint.
Vietnam’s billet export offers edge down: Vietnam’s BF-grade billet export offers stood at around $535/t FOB, a w-o-w decrease of around $10/t. However, no significant deals were heard concluded at current offers.
Overview of other SE Asian scrap markets
- Thailand: SteelMint’s assessment for Central America-origin HMS 1&2 (70:30) was assessed at $340/t CFR Thailand. Last week, 1,000 t of Central American HMS 1&2 (60:40) was booked at $325/t on CFR basis.
Outlook: Japan’s monthly Kanto Tetsugen ferrous scrap export tender is scheduled for 12 July, sources informed SteelMint. Overseas buyers are waiting for the Kanto scrap export tender outcome for a clearer price direction.
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