Vietnam is following the downward trend of international scrap prices as domestic steel producers exert pressure on import scrap prices. Japanese suppliers are out of the market despite the decreased freight between the countries, since the volatility of the Japanese yen is causing market players to be cautious. Also, the softening trends seen in the Asian and Chinese markets are not helping the situation.
Offers from the US West Coast to Vietnam for bulk HMS I/II 80:20 scrap has softened slightly from $390/mt CFR to $385-390/mt CFR. There have been no deals done from the US West Coast to Vietnam this week, sources report. Market sources believe that the workable prices for this grade have also declined a little, from $385-387/mt CFR to $380-382/mt CFR.
As previously reported by SteelOrbis, ex-US West Coast exporters have started to voice a HMS I/II 80:20 price of $320/mt FAS Long Beach port, down by $5-8/mt, though some sources said that this level needs to be confirmed in actual deals.
Following the ex-Japan H2 grade scrap deals done in Vietnam last week at $370/mt CFR, the workable level is still the same. The Japanese yen’s trend against the US dollar has been impacting the market for some time now. It has exceeded the psychological threshold of JPY 160 against the US dollar once again after reaching this point previously in July 2024. The Japanese yen has weakened to a fresh 39-year low, slipping past JPY 162 against the US dollar on June 30 despite growing market speculation over a potential intervention by the Japanese authorities to support the currency. This is the yen’s weakest level since December 1986, as expectations that the US Federal Reserve will keep interest rates elevated have continued to underpin the US dollar. Dollar buying by Japanese importers have also added to the downward pressure on the yen.
