Vietnamese mills have continued to maintain low capacity utilization rates, while heavy rainfalls have been impacting the country. Vietnam’s steel exports have dropped for the sixth consecutive month, amid the global slowdown and China’s impact. Although the Vietnamese government is targeting nine percent growth in the second half of the year, the steel segment continues to struggle for now. No deep sea scrap deals were confirmed over the past week, despite rumours. SteelOrbis observes that South Korea is also staying out of the market, with South Korean steelmakers procuring their scrap need from their domestic market. However, Japanese scrap prices are not declining, and ex-US scrap quotations are supported by the recently strengthened sentiment in the international scrap market.
US West Coast HMS I/II 80:20 offers for bulk cargoes are offered to Vietnam in the range of $410-420/mt CFR, while buyers are targeting $390/mt CFR instead. Hence, no ex-US bulk deals have been heard this week.
Meanwhile, ex-Japan H2 scrap offers are at $385-395/mt CFR, $5-10/mt higher than buyers’ bids. SteelOrbis hears that Japanese suppliers are not expecting a price decline in the coming period due to the depreciation of the yen.
While there is a rumour of a bulk ex-Australia HMS I/II 80:20 scrap cargo sold to Vietnam at $385-395/mt CFR, totaling 25,000 mt, no confirmation has been given for this information by the time of publication.