Over the past week, Vietnam’s import scrap prices have continued their upward trend. Market sources report that the finished steel market is also recording price increases but “not as strong as scrap quotations.” According to one Vietnamese source, “It is a tough time for producers.” While ex-US scrap offers for bulk cargoes are not considered workable for Vietnamese mills, buying scrap from neighbouring regions make more sense for them. Although South Korea is offering scrap to Taiwan, no offers from South Korea to Vietnam have been heard this week.
This week, ex-US West Coast HMS I/II 80:20 offers for bulk cargoes to Vietnam are at around $430/mt CFR, moving up sharply by $15/mt CFR over the past week. Vietnamese market sources have said that prices may move up in the coming week. “I am not sure if this price will still be available after some deals done this week by Turkey. The Asian market is still much lower than Turkey’s prices. I can say buyers are not interested in ex-US bulk offers. This level is not affordable for us right now,” a source commented. Ex-US containerized HMS I/II 80:20 scrap prices are at $380-385/mt CFR Vietnam.
Meanwhile, deals for Japanese H2 grade scrap to Vietnam have been closed at $382-385/mt CFR, while offers last week were at around $390/mt CFR Vietnam. There was a deal done for shindachi bulk scrap at $405-408/mt CFR. Some buyers are aiming to purchase HS scrap at $410-415/mt CFR, though market sources report that offers of this grade are on the scarce side.
SteelOrbis’ reference price for ex-Japan H2 scrap has remained stable this week at JPY 51,000-53,000/mt ($353-367/mt) FOB. However, the appreciation of the Japanese yen has resulted in a $9/mt increase in the dollar-based prices over the past week. The lower end is represented by H2 deals done by Vietnamese producers, while the upper end is represented by the Kanto tender results.
$1 = JPY 144.31