Vietnamese buyers have accepted offers for HMS I/II 80:20 scrap from the US supplier that were voiced at the end of last week, while the downward pressure on import scrap prices for Vietnam continues to be observed.
SteelOrbis has learned that a major Vietnamese blast furnace-based mill has concluded a deal for bulk HMS I/II 80:20 scrap at $540/mt CFR with the US seller, though the material could be shipped from the Australian yards of the seller. This price is in line with the offers Vietnamese buyers received from the US at the end of last week. “The freight from US West Coast to Vietnam can be around $60-65/mt,” said a source. As a result, the FOB equivalent of this price is estimated to be $475-480/mt FOB US West Coast.
Japanese bulk H2 grade scrap offers are standing at $500-515/mt CFR, significantly lower as compared to the offers recorded two weeks ago at $520-525/mt CFR. But if last week the tradable level was $510-515/mt CFR, now Vietnamese buyers are targeting $480/mt CFR and below for this grade, SteelOrbis understands. Market players state that some Japanese suppliers do not have an open sales channel to domestic mills, hence their need to conclude export sales to maintain cash flow. However, it is known that most Japanese sellers are working with their local producers. Domestic scrap prices in Japan are currently at JPY 54,000-55,500/mt ($473-486/mt) delivered for H2 grades. Japanese suppliers’ offers for HS grade scrap are reportedly at $570/mt CFR Vietnam.
Market players in Vietnam have maintained a cautious stance. “It is confusing,” one player stated, “most Asian countries are affected by China which is causing finished steel prices to move down significantly. As a result, Vietnamese mills cannot pay good prices for scrap, but sellers’ offers are still very firm.” The shortage of containers is still an issue for Vietnam, with one source stating, “Finding available containers is becoming harder by the day.” This is also another reason for sellers to keep their prices firm.
$1 = JPY 114.16