The import scrap market in Vietnam has been more active since late last week after a number of deals for billet exports were done to China over the past few weeks. Higher demand has led to prices for ex-US HMS I/II 80:20 by bulk exceeding $500/mt CFR.
A fresh deal for 20,000 mt of ex-US HMS I/II 80:20 by bulk has been confirmed at $505/mt CFR Vietnam, while late last week there was a rumour about a sale at $490-495/mt CFR. “Indeed Vietnam is back in the market, so prices are definitely above $500/mt CFR,” a trader said. After this deal, offers from the US have increased by $10/mt CFR to $515/mt CFR and “$510/mt CFR is in negotiations now,” a source said.
It seems that the higher booking prices to Vietnam will reduce the possibility of South Korean mills buying ex-US scrap in the near future, as bids there are still not above $490/mt CFR.
The improvement in bulk scrap demand in Vietnam has been connected with the sizable deals for Vietnamese billet to China, with the highest traded level for ex-Vietnam BOF billet $715/mt CFR last week. Though this week, billet prices in the Chinese market have eased, major mill Hoa Phat has managed to sell out its November shipment allocation, while some other EAF producers in Vietnam have been able to conclude some deals with the Philippines.
In addition to ex-US scrap deals, higher prices for ex-Japan scrap have been reported to Vietnam this week. In particular, the latest sales for H2 have been at $485-487/mt CFR this week, up from $470-480/mt CFR a week earlier.
