Vietnam: Scrap import bookings dip on high offers as buyers turn to domestic sourcing

Imported scrap trades in the South East Asian market continued to move in a slow lane throughout the week. Japanese scrap offers remained on the higher side despite the lowering of bids by South Korean mills last week.

The last bulk deal was heard last week in which a Vietnam-based steel mill booked USA origin bulk scrap cargo containing 40,000 t HMS 80:20 at $570-575/t CFR, sources informed SteelMint.

“Buyers have suspended fresh bookings currently due to high offers and are awaiting clarity on offers. However, the situation is likely to improve by mid-March”, a source informed.

The Covid-19-induced global supply chain crisis has already put huge pressure on shipping routes; the crisis has added to the uncertainty of the ongoing Russia-Ukraine war, the source further added.

• Domestic scrap prices remain unchanged: Prices for H1 and H2 grade ferrous scrap in Vietnam are assessed at VND 12,800/kg ($556/t) and VND 12,500/kg ($543/t), respectively, unchanged as against 22 Feb. Mills preferred sourcing domestic scrap amidst higher imported scrap offers.
• Vietnam’s billets export offers rise: Vietnam’s BF-route billet export offers stood at $715/t FOB, an increase of around $20/t w-o-w. However, no deals were heard concluded this week.

South East Asian imported billet prices increased this week despite the volatility in Chinese rebar futures and the ongoing conflict between Russia and Ukraine.

Overview of other SE Asian markets

• Thai buyers wait and watch: With the recent drop in Japanese scrap prices, buyers are waiting for a clear price direction. Recent offers from Central America:

1. HMS 1&2 (70:30) containers were offered at $450-455/t CFR Laem Chabang, unchanged for the second successive week.
2. HMS 80:20 was offered at $470/t CFR. A few deals were heard at $465-470/t levels.

• Indonesia’s scrap imports slow down: Considering the high-level offers from suppliers, imported scrap trades slowed down in Indonesia. Recent offers:

1. PNS: $535-540/t CFR Jakarta
2. HMS1: $525/t CFR Jakarta
3. HMS 90:10: $508/t CFR Jakarta