Scrap offer prices in Southeast Asia have increased over the past week and one bulk deal has been signed at a higher level. Japanese exporters have been out of the market due to holidays and new prices will be announced from Wednesday after the new Kanto Tetsugen export tender. Some downside moods have started to appear in the market in Southeast Asia, which has been reflected in the wait-and-see position of major buyers in Vietnam.
A contract for 30,000-35,000 mt of shredded scrap from the US West Coast has been signed at $305/mt CFR Thailand. “Prices are lower than in Bangladesh, but demand improved,” one of the sources said. As SteelOrbis reported earlier, ex-US scrap HMS I/II 80:20 was sold at $307.5/mt CFR to Bangladesh in the latest deal, while shredded scrap - at $312.5/mt CFR.
Offers from the US for HMS I/II 80:20 to Vietnam have been at $305-310/mt CFR, but customers are seeing the market price level at below $300/mt CFR. This level could be achieved only if someone is in urgent need to restock, according to a local source. The previous bulk deal from the US to Vietnam was done at $295/mt CFR for HMS I/II 80:20 and at $297/mt CFR for shredded, as it was reported in early August.
Last week some rare offers from Japan for H2 scrap have been coming to Vietnam at $285-290/mt CFR, and the workable level is still at $280/mt CFR maximum. For now, exporters have withdrawn offers, waiting for Kanto export tender results tomorrow.
