Prices for imported scrap have increased visibly in Vietnam over the past week, supported by good appetite from mills in the country, enjoying rising billet prices.
Demand has been seen for Japanese scrap, as well as for material from Hong Kong, and even a new ex-US booking has been rumoured in the market at a higher price level.
Ex-Japan H2 scrap has been sold at $320/mt CFR during the past week and one lot from the Kanto tender has been priced at $328/mt CFR. Sources said that, though the latter is overpriced, exporters are insisting on higher prices and “it is hard to find anything below $325/mt CFR,” according to a trading source. Most Japanese exporters have been offering at above JPY 31,000/mt ($296/mt) FOB.
Last week, a deal for HMS I/II 50:50 from Hong Kong was done at $323/mt CFR, sources have reported.
About a week ago, ex-Australia HMS I/II 80:20 was sold at $320/mt CFR to Vietnam, but after that a new deal has been rumoured for ex-US material at $340/mt CFR, though this information has not been confirmed so far. Some sources said this is too sharp an increase and that there have been no bids above $330/mt CFR so far. But some market participants believe this can be a tradable value in the near future, taking into account the latest prices for billet in Vietnam.
Last week, a Vietnamese producer sold a cargo of billet to China at $465/mt FOB, which translates to $475/mt CFR. An Indonesian exporter has concluded a contract at the same price level to China. The new target price level is $480/mt FOB ($490/mt CFR), which is expected to be reached this week, if demand from China persists.