Vietnam: Imported scrap trade slows down as buyers expect further price cuts

Imported scrap offers to Vietnam are mostly stable on a weekly basis. The majority of steel mills have opted to wait and watch market behaviours, owing to negative domestic market sentiments.

Bulk Japanese H2 offers inched down for the third week to $490/t CFR levels, down $2/t w-o-w. The most awaited Japanese Kanto scrap export tender was conducted on 9th Dec’21. The lower bids from participants resulted in the tender remaining inconclusive for the second consecutive month, SteelMint understands.

On the other hand, slow overseas demand for billet has also remained the major factor behind the silence in the scrap market as high inventory of scrap with the mills has kept buyers holding back.

Domestic scrap prices firm: Ferrous scrap prices in Vietnam remain unchanged for yet another week, as per the latest update received from a market source. The procurement prices of H1 and H2 grades are VND 10,700/kg ($465/t) and VND 10,400/kg ($452/t), respectively.

But few scrap suppliers have increased scrap prices illegally by VND 200/kg ($9/t), due to scrap shortage.

Vietnam’s billets export offers inch down: The country’s billets export market reported limited activity this week. According to SteelMint sources, the country’s BF-route offers were at $620/t FOB, a drop of $5/t, w-o-w.

Overview of other South East Asian markets

Indonesia scrap prices stable: Imported scrap prices to Indonesia remained mostly stable last week, with limited trade observed.

• Australia-origin PNS is being offered at $540/t CFR Jakarta levels, unchanged w-o-w.
• PNS from the UK inched down to $520/t CFR Jakarta levels.
• New Zealand-origin shredded is being offered at $527/t CFR Jakarta.
• HMS 1 from Australia is at $510/t CFR Jakarta.
• New Zealand-origin HMS 1&2 (80:20) are cited at $505/t CFR Jakarta.

Imported scrap offers to Thailand down: Imported scrap offers to Thailand for HMS 1 and 2 (80:20) from Central America have dropped significantly to $415-420/t CFR from $440-445/t CFR recorded during the preceding week.

Outlook

After the unsuccessful Kanto tender outcome and lowering of bids from Vietnam & South Korea, buyers highly foresee a price correction, ahead of the winter holidays.