As Japanese domestic and export scrap prices rapidly declined over the past two weeks, sources inform SteelOrbis that ex-US containerized HMS I/II 80:20 offers to regions such as Taiwan, Thailand and Vietnam also had to adjust downward. Foreign buyers are reportedly tentative to seal deals given weaknesses in their own domestic markets, planned production cuts in January at various mills in Taiwan and Vietnam, and the possibility of better priced scrap offers in late November and December.
Sources report ex-US HMS I/II 80:20 containerized offers at $315-320/mt CFR Thailand and $300-310/mt CFR Taiwan with some deals reportedly concluded in the week at $310-312/mt CFR Thailand and $300-303/mt CFR Taiwan.
The lack of inquiries and buying activity of ex-US containerized HMS I/II 80:20 scrap in Vietnam are reportedly linked to domestic market concerns and import inspection delays. Import inspections are reportedly severely extending the lead time for containerized scrap imports arriving at mill destinations. Additionally, a source noted that decreasing import HRC and billet offers to Vietnam from destinations such as India and China are placing downward pressure on Vietnam’s domestic market prices and, therefore, resulting in a delayed interest for ex-US containerized scrap at the moment.