Scrap prices in Vietnam still soft as business fails to improve

Wednesday, 21 September 2022 17:21:16 (GMT+3)   |   Istanbul
       

The mood in the Vietnamese scrap market is still cautious as regards any move to increase prices or buy higher tonnages. SteelOrbis observes that the Vietnamese steel industry’s performance is still weak. According to a Vietnamese source, “[Vietnamese] mills have scrap demand but they are targeting lower prices. There are offers of big bulk cargoes from the EU and the US, but mills do not dare to book big quantities at the moment.”

Japanese H2 offers to Vietnam have risen slightly to $405/mt CFR, from the range of $400-405/mt CFR recorded last week. Since the local Japanese market has maintained its strength in terms of scrap prices, the small increase in export offers is not a surprise, though Tokyo Steel announced a very small decrease in prices today for its Tahara and Nagoya yards. Also, South Korea’s Hyundai Steel is expected to share its bids for Japanese scrap tomorrow, September 22, and all sides are waiting for its new bids to see whether it will support the Japanese scrap market or not.

This week, bulk HMS I/II 80:20 scrap cargoes from the US West Coast are offered to Vietnam at $390/mt CFR, $5-10/mt lower than the 395-400/mt CFR range recorded last week. However, Vietnamese buyers still prefer containerized material as they are trying to avoid paying higher levels due to the slow activity of their steel industry.

A Vietnamese producer has received an offer for ex-US HMS I/II 80:20 scrap in containers at $360-365/mt CFR, down $10/mt since the deal concluded at $370-375/mt CFR last week. On the other hand, the Vietnamese buyer’s bid was at $350/mt CFR for this grade.

Also, European scrap suppliers are still in the Vietnamese market seeking opportunities due to the weak demand in their traditional sales destinations. This week, offers to Vietnam from the EU are in the $390s/mt CFR, but tradable levels are still lower at around $380/mt CFR and below.

An ex-Hong Kong cargo for HMS I/II 50:50 scrap by bulk to Vietnam was offered at $390-395/mt CFR this week, $5/mt higher than the level in a deal at $390/mt CFR last week. SteelOrbis hears that there are no bids yet for this offer.


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