Due to the anticipated recovery of steel demand after the Tet holiday in Vietnam, sentiment in Vietnam’s import scrap market is relatively positive. SteelOrbis has heard that buyers remain cautious for now towards import scrap offers as the Vietnamese dong has lost strength against the US dollar from 25,607 to around 26,037. On the other hand, Vietnamese mills are expected to restock with scrap following the holiday.
Ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have moved up by $2.5/mt week on week to $360-365/mt CFR. Market sources report that negotiations are being carried out regarding these price levels. Some market sources report that bids from Vietnam for ex-US bulk scrap are at around $340-345/mt CFR, with a big gap between offers and bids. On the other hand, ex-US West Coast deals done to Bangladesh in the range of $370-375/mt CFR indicate that $360-365/mt CFR Taiwan levels may be achieved in the coming days by US-based exporters.
Meanwhile, workable levels for Japanese H2 scrap in Vietnam are at around $320-325/mt CFR, with offers to Vietnam at around $340/mt CFR.
