- US HMS offers high, bids lag
- Mills maintain comfortable scrap inventory
Vietnam’s scrap market stayed cautious, with H2 and HMS prices down w-o-w amid ample inventories and weak buying interest. Mills awaited Kanto tender signals, while wide bid-offer gaps kept prices range-bound.
Weekly assessments
- Japanese H2 scrap was at $322/t CFR Vietnam, down by $3/t w-o-w
- US-origin HMS 80:20 bulk stood at $342/t CFR Vietnam, down by $3/t w-o-w
Market updates
H2 scrap offers in Vietnam were heard at $325-330/t CFR, lower w-o-w, although the most competitive levels were largely unchanged from late December before the Japanese New Year holidays. Indicative bids were reported below $320-322/t CFR. Most suppliers were cautious and refrained from aggressive selling, after getting signals from the Kanto tender.
Vietnamese mills were not in a rush to restock, supported by comfortable inventory levels after advance purchases made in November and December ahead of the Lunar New Year. While some mills have started planning for March shipments, overall buying interest remained limited, with mills preferring to wait for improved price clarity.
US-origin HMS 80:20 offers were heard firmer at $345-350/t CFR Vietnam. However, buyer sentiment remained cautious, with bids lagging at $330-335/t CFR. Market participants stated that workable deals were more likely at $340-345/t CFR, as buyers resisted higher offer levels amid a wide bid-offer gap.
Outlook
Vietnam’s scrap market is expected to remain range-bound, with mills maintaining a cautious buying stance due to comfortable inventories and weak demand. Prices are likely to move only marginally unless buying interest improves.
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