Vietnamese mills have accepted higher levels for Japanese scrap after the Kanto tender which closed with a slight increase, but it is observed that deep sea scrap prices from the US are declining in the country amid the lack of demand. Since Vietnamese producers are still working at lower capacity utilization rates and South Korean mills are still showing no interest in ex-US cargoes, suppliers of deep sea bulk cargoes in Asia are under stronger pressure compared to their Japanese competitors.
US West Coast HMS I/II 80:20 offers for bulk cargoes are still coming to Vietnam in the range of $410/mt CFR, $10/mt lower on the upper end as compared to the offer levels recorded last week. There is a rumour of a bulk ex-Australia HMS I/II 80:20 scrap cargo to South Korea at $400-405/mt CFR, but this information was not confirmed by the time of publication. A South Korean source as reported that the indications for ex-US West Coast HMS I/II 80:20 bulk cargoes are at $405/mt CFR South Korea, because “sellers insist on the price.”
Meanwhile, ex-Japan H2 scrap offers are at $390/mt CFR, $10/mt higher on the lower end as compared to the offer levels recorded last week. A Vietnamese steelmaker concluded a deal for Japanese H2 scrap at $385/mt CFR this week, pushing actual prices up $5/mt week on week. Also, SteelOrbis has learned HS scrap was sold to Vietnam at $418/mt CFR, up $8/mt week on week.
SteelOrbis’ reference price for ex-Japan H2 scrap is now at JPY 51,000-52,000/mt ($345-351/mt) FOB, up by JPY 500-800/mt or $9-11/mt week on week. The lower end is represented by the current Kanto region FAS prices, while the upper end is represented by the deals done by Vietnamese buyers.
$1 = JPY 147.80