While scrap demand in Vietnam remains on the low side as the country is dealing with the aftermath of the typhoons which hit the region in recent weeks, ex-US scrap offers to the country have moved up slightly due to the support found from scrap prices in Turkey. Meanwhile, Japanese scrap prices to Vietnam are relatively stable after the Kanto export tender. Market sources report that Vietnamese buyers are expected to maintain their cautious stance unless their finished steel market recovers in the near term.
Ex-US bulk HMS I/II 80:20 scrap offers have picked up slightly over the past week, moving from $350/mt CFR to $350-355/mt CFR. Sources report that workable levels are still at around $340/mt CFR. “Due to the gap between offer and bid prices, no deals have been done this week,” a source reported. Meanwhile, more ex-US West Coast cargoes were sold to Turkey this week, with prices remaining at $355.5/mt CFR Turkey. While market sources report that freight discounts were provided for these cargoes on vessels that are seeking to pass over to the Atlantic, Turkish mills are using this opportunity to secure more ex-US cargoes. The interest coming from Turkey and the lower-than-usual freight rate for this destination are supporting the higher scrap offer prices from sellers on the US West Coast for other buyers.
Vietnam’s Japanese H2 scrap purchases were closed at $325/mt CFR over the past week, with offers remaining at around $330/mt CFR, unchanged for the third week in a row. Meanwhile, the winner of the Kanto export tender was a Vietnamese buyer who bought 20,000 mt with a highest bid at JPY 45,960/mt FOB or $298/mt FOB ($1 = JPY 154.25 on November 11).
This week, the Tokyo Bay FAS-based prices for H2 grade scrap have remained stable at JPY 43,000/mt ($279/mt), down by $2/mt on dollar basis. The FOB-based export price remains at JPY 44,000/mt ($285/mt) for the grade in question, down by $2/mt week on week.
The Tokyo Bay HS and shindachi grade scrap prices have moved sideways week on week at JPY 47,000/mt ($304/mt) FAS and JPY 46,500/mt ($301/mt) FAS, both down by $3/mt, respectively.
$1 = JPY 154.03