With scrap prices having recovered as of the beginning of this week, there are some new bookings done in Vietnam from various destinations at higher price levels. It is also observed that Vietnamese producers are restocking as the country’s parliament has approved a stimulus package worth approximately $15.1 billion to revive the economy after the strict lockdowns initiated due to Covid-19. The stimulus package in question includes about $7.4 billion in infrastructure spending for 2022-23. Also, the Tet Festival will be held on January 29-30, and producers are trying to secure some scrap before the holiday. In addition, sentiment in the billet market in Asia has improved this week, which has also supported scrap prices in Vietnam.
Vietnamese producers have accepted the levels of $500/mt CFR for ex-Japan H2 scrap, with the price moving up from the range of $485-490/mt CFR since last week as a workable level. The acceptable price level for H2 scrap in Vietnam is higher than in the latest bids from South Korea. As a result, the SteelOrbis reference price has increased by JPY 1,000/mt ($9/mt) on the upper end to JPY 49,000-52,000/mt ($428-455/mt) FOB.
Some H1/2 50:50 scrap from Hong Kong has been sold to Vietnam at $490/mt CFR today, January 14, again indicating an increase from $468-470/mt CFR in deals before the Kanto tender held on Wednesday, January 12.
Higher prices have been accepted as importers have needed to restock and more deals are possible in the near future.
Meanwhile, ex-US HMS I/II 80:20 scrap offers are at $520-530/mt CFR Vietnam.