Import scrap prices in Vietnam have surged up at a significant rate over the past week. While ex-US scrap offers to Vietnam are considered unacceptable, the focus of buyers has once again shifted to alternative sources such as containerized scrap. Additionally, the strong demand observed in the Japanese domestic market and in South Korea have led to a price increase in Japanese offers to Vietnam.
As of today, offers for ex-US HMS I/II 80:20 to Vietnam are at $690-700/mt CFR, with a huge surge of $100-110/mt week on week. Just yesterday, March 9, US offers for this grade to Vietnam were in the range of $650-660/mt CFR, though, following the increases observed on the Kanto tender, US suppliers have also raised their offers to Vietnam. “This level is too high and cannot be afforded by Vietnamese buyers. Some Vietnamese buyers are focused on containerized HMS I/II 80:20 scrap instead of bulk,” a source stated. Accordingly, containerized HMS I/II 80:20 scrap deals were closed in the range of $550-560/mt CFR Vietnam this week. “Containers provide small quantities, but bulk is very expensive,” the source added.
Meanwhile, offers from Japan to Vietnam for H2 grades are currently at around $630-640/mt CFR, indicating a $60-70/mt increase week on week. The lowest offer from Japan to Vietnam was at $625/mt CFR for H2 grades, SteelOrbis has learned. “Japan was relatively silent this week,” a Vietnamese trader commented. According to this source, Japanese busheling bulk scrap offers to Vietnam are at $670/mt CFR Vietnam. Following the Kanto tender, not only Tokyo Steel but also South Korea’s Hyundai have increased their bids for Japanese scrap.
According to ING Bank’s report published on March 3, the total trade of Ukraine and Russia is greatest with South Korea, Vietnam and Japan. “Vietnam runs small bilateral trade surpluses with these two nations, with total trade less than two percent of GDP for Vietnam,” the report stated. Having said that, the bank considers Vietnam to be the economy in the Asian region most affected by Russia’s invasion of Ukraine, along with Thailand, Japan and South Korea.
