As the downward pressure in the international scrap market continues, the situation in Vietnam has not changed much over the past week. “Vietnam’s construction sector is also under pressure amid increasing prices for some materials such as cement and sand, though the declines in rebar prices are helping,” some sources report. While infrastructure projects in Vietnam are expected to continue for the rest of the year, the residential building side is slower than usual, resulting in a cautious stance amongst end-users SteelOrbis understands.
Offers from the US West Coast to Vietnam for bulk HMS I/II 80:20 scrap are at $390/mt CFR, down by $10/mt. There have been no deals done from the US West Coast to Vietnam this week, sources report. Market sources believe that the workable prices for this grade should be around $385-387/mt CFR. Offers for the same grade from Australia are heard at $380-385/mt CFR, moving down from $390/mt CFR Vietnam recorded last week.
As previously reported by SteelOrbis, ferrous containerized scrap prices on the US West Coast continue to fall. Even after last week, the price of HMS I/II 80:20 decreased by $5/mt on Wednesday, while there were almost immediate reports the next day that the latest deals had already fallen by another $5/mt. The price fell last Wednesday to $335/mt FAS Long Beach port and dropped to $330/mt FAS on Thursday. P&S ft also softened by $5/mt to $345-350/mt FAS port, while shredded decreased.
According to sources, Vietnam bought ex-Japan H2 grade scrap at $370/mt CFR, moving sideways week on week. Market sources report that freight from Japan to Vietnam declined by approximately $7/mt to $38/mt and left Japanese suppliers some margins. On the other and, the declining demand from Asian countries is exerting pressure on Japanese suppliers. While some market sources believe that offers from Japan are expected to move down in the coming days, others do not agree and think a stable trend is more likely.
In the current week, the Tokyo Bay FAS-based prices for H2 grade scrap remain at JPY 53,000/mt ($328mt), down by $3/mt on US dollar basis considering the fluctuating Japanese yen-US dollar rate, as compared to the levels on June 10. The FOB-based export price remains at JPY 54,000/mt ($334/mt) for the grade in question, down by $3/mt in the same period.
The Tokyo Bay HS grade scrap prices are still at JPY 57,500/mt ($356/mt) FAS, down by $2/mt. Shindachi grade scrap quotations have moved down by JPY 500/mt or $6/mt to JPY 57,500/mt ($356/mt) FAS.
$1 = JPY 161.69
