Vietnam’s imported scrap trade is yet to gain momentum despite prices declining to the lowest level in over a year. Heavy rainfall in many parts of the country, especially in the southern region, impacted day-to-day trading activities. Finished long steel in the domestic and overseas markets witnessed subdued demand.
Meanwhile, a total of 25,000 tonnes (t) of Japanese H2 scrap was awarded at an average price of JPY 44,554/t ($324/t) FAS in the recently-concluded monthly Kanto Tetsugen ferrous scrap export tender in Japan for July last week. Prices fell to over one-year low, as per SteelMint data.
Sources revealed that the material was booked by Vietnamese and Bangladeshi steel mills.
Indicative H2 offers from Japan are at $380-385/t CFR, down $10/t w-o-w. Negotiations for H2 bulk scrap cargo are going on, although fresh deals are yet to be heard.
In comparison, USA-origin bulk cargoes are heard to have been booked at $360-365/t CFR levels.
Domestic scrap available at workable levels: Procurement prices for domestic scrap remained at workable levels and most of the mills preferred to buy domestic material. Domestic H1 and H2 grades are at VND 9,700/kg ($422/t) and VND 9,400/kg ($409/t), respectively. Imported scrap buyers showed interest in sourcing domestic material at a favourable price.
Billet export offers fall w-o-w: Vietnam’s BF-grade billet export offers stood at around $520/t FOB, a w-o-w decline of around $15/t due to weak demand in the domestic market.
Overview of other SE Asian scrap markets
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- Thailand: SteelMint’s assessment for Central America-origin HMS 1&2 (70:30) was assessed at $320-325/t CFR Thailand, while offers for HMS 1&2 (80:20) from South America were at $330 CFR Thailand.
- Indonesia: Imported scrap offers for the most preferred oversized PNS grade from Hong Kong were at $426/t CFR Jakarta, whereas New Zealand-origin HMS 1&2 (90:10) was offered at $420/t CFR Jakarta.
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