Bid prices for import scrap have started to retreat in Vietnam in the second half of this week, signalling changing sentiment in the market and an end of the upward price movement. A number of bulk deals have been done at almost the same prices as last week or even with small decreases.
Two bulk cargoes from Australia and the US have been traded to Vietnam at $455-465/mt CFR for HMS I/II 80:20 scrap. Both deals were for mixed cargoes and the lower price level of $455-460/mt CFR corresponds to ex-Australia HMS I/II 80:20. Last week, the tradable price level for ex-US HMS I/II 80:20 was at $460-465/mt CFR, almost similar to the latest deals. “We think the prices have reached their peak,” a trader said.
Japanese exporters were bullish early this week, increasing prices to $460-470/mt CFR, as reported on Wednesday. But by the end of the week, bids have slipped and suppliers have had to follow. A deal for ex-Japan H2 scrap by bulk has been done at $452/mt CFR on Friday. As a result, prices for ex-Japan scrap in Vietnam have not changed in comparison to late last week.
Bids for ex-Japan HS scrap have been heard at $485-490/mt CFR in Vietnam. Chinese customers have resumed purchases of HS scrap, with a few deals already signed at $490-500/mt CFR late this week. Accordingly, Japanese suppliers will have support not to drop their prices for HS scrap in the near future.