Demand in Vietnam supports sharp rises in scrap prices

Friday, 20 November 2020 17:10:18 (GMT+3)   |   Istanbul
       

Vietnamese scrap importers have been interested in purchases in the past 10 days, with new deals for imported scrap being reported lately at higher prices. The continuing uptrend in the billet segment has supported demand for scrap in Vietnam.

After a bulk HMS I/II 80:20 cargo from the US was sold at $340/mt CFR in Vietnam, as SteelOrbis reported earlier, another bulk deal for the same grade has been reported at $340-345/mt CFR. But after that, offers from the US have increased sharply - to $355/mt CFR. As a result, buyers reacted and said it is possible to deal at closer to $350/mt CFR, though no new deals have been reported so far. Compared to last week, the workable price level for HMS I/II 80:20 scrap in Vietnam has risen by $15/mt to $345-350/mt CFR. “The market is stronger. Billet prices are close to $500/mt CFR already. Many mills are trying to produce as much as possible,” a source said.

Offers for ex-Japan H2 scrap reached $340/mt CFR Vietnam early this week and some tonnage has been sold at $335/mt CFR, sources confirmed. “Most Japanese suppliers are in a wait-and-see position. They don’t want to sell cheap,” an exporter said, adding that the target price level is at $345-350/mt CFR at the moment. The ex-Japan H2 scrap reference price in Vietnam has been increased by SteelOrbis from $320-328/mt CFR last week to $335-340/mt CFR.


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