Prices for imported scrap in Vietnam have posted increases over the past two weeks and this has been fixed in deals for bulk bookings from the major suppliers like Japan and the US. The main reason behind the recent increases has been the global uptrend and the need to replenish stocks ahead of the Tet holiday in late January, SteelOrbis has learned.
The latest deal price level for ex-Japan H2 scrap to Vietnam was at $420/mt CFR last week, which is up by $10-15/mt from the previous level in late December. But market sources believe that offer prices and tradable levels may increase further as the winners in the latest Kanto export tender - closed at the average price of JPY 50,932/mt FAS or JPY 51,932/mt ($393/mt) FOB - are expected to target the Vietnamese market. This FOB price is equivalent to around $430/mt on CFR basis to Vietnam or slightly above.
In addition, last week a large-volume bulk deal for ex-US HMS I/II was done to Vietnam at $435/mt CFR. This means that the contract prices have increased by $25/mt from the previous deal from the US done in mid-December, while they are up by $15-20/mt from offers two weeks ago. After this deal, new offers for bulk ex-US scrap to Vietnam have increased to $440-450/mt CFR.