Vietnam still buys limited import scrap, could cut prices further

Friday, 28 July 2023 16:34:02 (GMT+3)   |   Istanbul
       

Demand in the Vietnamese scrap market is still on the weak side. One Vietnamese market player said, “After the new regulation that removed the tax on billet imports of ASEAN origin came into effect in April, some mills have been evaluating whether it is more attractive to import billet or scrap, which has slowed the demand for scrap.” Since Chinese futures prices increased this week, market players believe it is not the right time to import billets.

Some small-volume deals for HMS I/II 80:20 in containers have been reported at $365/mt CFR. US West Coast HMS I/II 80:20 offers for bulk cargoes have been at $390/mt CFR Vietnam, while Vietnamese buyers’ bids have been at $380/mt CFR. No deep sea bulk deal has been heard this week.

At the same time, deals for ex-Japan H2 scrap were done at $370/mt CFR and shindachi scrap has changed hands at $410/mt CFR Vietnam. Japanese sources also agree that there is pressure on Japanese scrap quotations in the absence of some buyers in the export markets. Japanese scrap prices may go down in the coming period.

As of July 27, Tokyo Bay FAS-based prices for H2 grade scrap were at JPY 49,500-51,000/mt ($354-365/mt). This level signals JPY 50,500-52,000/mt ($362-372/mt) FOB for this grade.

Tokyo Bay FAS prices for HS grade scrap are now in the range of JPY 53,000-54,500/mt ($379-390/mt), while prices for shindachi scrap are at JPY 51,000-53,500/mt ($365-383/mt).

As a result, the SteelOrbis reference prices for ex-Japan H2 scrap have settled at JPY 47,000-51,000/mt ($337-365/mt) FOB. The lower end of the range corresponds to deals done by Vietnam, while the upper end is now represented by the Tokyo Bay prices.

$1 = JPY 139.66


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