Vietnamese mills have shown some interest in ex-US bulk scrap cargoes this week as Japanese scrap suppliers have maintained a cautious stance due to their firm collection costs. Market players report that the sentiment in Vietnam’s import scrap market is recovering after the government’s announcements of new projects and infrastructure investments. According to local Vietnamese media, “Hundreds of projects have recently been launched nationwide, with a total investment of around VND 1.28 quadrillion (approximately $53.4 billion). This significant capital injection is expected to accelerate economic growth not only in 2025 but also in the years to follow.”
Ex-Japan H2 scrap offers to Vietnam have increased by $5/mt over the past week to $320-330/mt CFR. Market sources report that the bids received from Vietnamese buyers are still in the range of $310-315/mt CFR. One market source stated, “The Japanese export market has been relatively muted this week due to weak steel market fundamentals and firm dockside collection costs. Sentiment is further weighed down by soft Chinese steel prices, where there is an increased chance of cheaper billet exports from China. This exerts further pressure on scrap quotations.”
Meanwhile, Vietnamese buyers have concluded ex-US bulk HMS I/II 80:20 scrap deals this week in the range of $342-344/mt CFR. This range was similar to the workable levels shared by SteelOrbis last week at $340-345/mt CFR, indicating a $1/mt increase in actual prices.
Meanwhile, the Tokyo Bay FAS-based prices for H2 grade scrap are closing the week at JPY 39,500/mt ($269/mt). The Japanese yen-based price has remained unchanged since August 8, while the dollar-based price has declined by $3/mt week on week amid the fluctuations observed in the Japanese yen-US dollar exchange rate. The FOB-based export price remains at JPY 40,500/mt ($275/mt) for the grade in question, up by $3/mt week on week.
The Tokyo Bay HS grade scrap price has moved up by JPY 500/mt week on week to JPY 45,000/mt ($306/mt) FAS, up by $5/mt. Meanwhile, shindachi scrap price has remained stable at JPY 44,500/mt ($302/mt) FAS.
$1 = JPY 147.09