Vietnam’s import scrap market has moved sideways in the current week, with some interest shown in Russian scrap. The lack of sustainable steel demand leads to slower trading in the market and buyers are trying to exert pressure on prices. With the buyer in the latest Kanto scrap export tender in Japan being from Vietnam, there is some small room for an increase for Japanese suppliers. Meanwhile, South Korean producers, who have been out of the import scrap market for a significant time, have concluded deals for Russian scrap in the second week.
Over the past week, offers for Japanese H2 scrap to Vietnam have remained stable in the range of $310-315/mt CFR. In the Kanto export tender, the highest bid was at JPY 41,888 /mt FAS or JPY 42,888/mt FOB ($290/mt FOB), and, with approximately $30/mt freight between the countries, the workable CFR price has increased to $320/mt for Vietnam.
Meanwhile, ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have moved up by another $5/mt on the upper end this week to $340-350/mt CFR, while workable levels are at around $335-337/mt CFR.
Additionally, Vietnam has bought an ex-Russian cargo for A3 grade scrap at $327/mt CFR.
For the second week, there are new ex-Russian deals done by South Korean mills. One has bought a cargo from Russia with A3 grade scrap at $315/mt CFR this week, up from last week’s $307-309/mt CFR. While domestic prices are moving up in South Korea, market sources report that the pressure on local scrap suppliers is still considerable.
The Tokyo Bay FAS-based prices for H2 grade scrap have moved down by JPY 1,000/mt to JPY 39,500/mt ($267/mt), down by $5/mt as compared to the levels recorded last week. The FOB-based export price remains at JPY 40,500/mt ($274/mt) for the grade in question, down by $5/mt.
The Tokyo Bay HS grade scrap price has moved up by JPY 500/mt week on week to JPY 44,500/mt ($301/mt) FAS, rising by $6/mt, as the shindachi scrap price has remained stable at JPY 44,500/mt ($301/mt) FAS, up by $1/mt as compared to August 1.
$1 = JPY 147.68