Due to the low demand of rebar resulted from the slow construction season, Vietnam is showing limited appetite for scrap procurement. “Since producer’s capacity utilization rates are on the low side, their slower scrap trade is more than enough,” a source commented.
Over the past week, offers for Japanese H2 scrap to Vietnam have moved down by another $5/mt to $315-320/mt CFR. Market sources report that buyers’ workable price ideas are at around $310s/mt CFR. Despite the weakening Japanese yen giving some room to scrap suppliers to lower their offer prices, no meaningful recovery in scrap demand has been seen in Vietnam, market sources report.
Meanwhile, ex-US bulk HMS I/II 80:20 scrap offers to Vietnam are still at around $335-340/mt CFR, workable levels remain at $335/mt CFR.
The Tokyo Bay FAS-based prices for H2 grade scrap are now at JPY 40,500/mt ($272/mt), dropped by JPY 500/mt earlier this week. Dollar-based quotations have moved down by $12/mt as compared to the levels recorded on July 4 when $1 was JPY 144.36. The FOB-based export price remains at JPY 41,500/mt ($291/mt) for the grade in question, again moving sideways on dollars.
The Tokyo Bay HS grade scrap price has moved down by JPY 1,000/mt week on week to JPY 44,000/mt ($296/mt) FAS as shindachi scrap price is at JPY 44,500/mt ($299/mt) FAS, down $16/mt and by $9/mt respectively as compared to July 4.
$1 = JPY 148.40