Vietnam's import scrap buyers are showing interest in declining ex-Japan offers, while they are staying away from ex-US scrap offers. Meanwhile, several Vietnamese mills have increased their steel prices this week, citing higher billet, raw material and oil prices.
Offers from the US West Coast to Vietnam for bulk HMS I/II 80:20 scrap have declined to $370-380/mt CFR this week from the $380/mt CFR recorded last week. “Due to the weak Japanese market, there is no interest in ex-US cargoes in Vietnam. So there have been no deals this week,” a source reported.
As previously reported by SteelOrbis, containerized ferrous scrap prices for the US West Coast (USWC) export market remained unchanged for another week and actually increased in some deals at the higher end of the price range. HMS I/II 80:20 was sold in some deals at $310/mt FAS Long Beach port, leaving the price range at $305-310/mt FAS. Last week it stood at $305/mt FAS. Market contacts on the USWC are more confident now that the market has reached the bottom, even though some market factors are still unclear.
Deals for ex-Japan H2 scrap have been concluded by Vietnamese buyers at $360/mt CFR, with the workable level declining by $2.5/mt on average since last week. Japanese scrap exporters lack support from their local market or from Taiwan and are forced to reduce their offers to Vietnamese buyers. Market sources still believe there is more room for Japanese scrap prices to move down, especially as the Kanto tender to be held next Friday approaches.
