In June, a Vietnamese mill has managed to secure several scrap cargoes from untraditional suppliers from the EU and the Baltic region in particular. The absence of Turkey from the international scrap market has given Vietnam leverage, supported by attractive freight rates. As Vietnam has exerted pressure on its traditional scrap suppliers with the support of the extra tonnages, its scrap import quotations have continued to decline over the past week. Vietnam is still buying scrap from Hong Kong and negotiating with the US, but most players agree that Japanese scrap prices are not workable despite the decreasing trend in Japanese suppliers’ export offers.
Following the ex-Hong Kong deal for HMS I/II 50:50 scrap by bulk to Vietnam closed at $405/mt CFR last week, another deal was done from Hong Kong for the same grade at around $362/mt CFR. This level is significantly lower than last week’s levels desired by buyers at $390/mt CFR. However, SteelOrbis has learned that this deal fixed at $362/mt may remain an exception, as sellers are not willing to sell at low price levels and are offering at $385-390/mt CFR Vietnam.
Meanwhile, SteelOrbis has learned that Japanese suppliers’ H2 scrap offers to Vietnam are standing at $405-410/mt CFR, down from the range of $425-435/mt CFR recorded last week. According to market players, the freight between Japan and Vietnam is at $60-65/mt CFR. Japanese H2 scrap prices are equal to $345/mt FOB or JPY 46,859/mt FOB. Having said that, Japanese suppliers’ offers to Vietnam are very high as compared to their competitors’ prices, as SteelOrbis mentioned earlier this week. “It would be very hard for them to sell to Vietnam,” a Vietnamese trader commented.
Additionally, SteelOrbis hears that Vietnamese buyers are bidding for an ex-US West Coast bulk HMS I/II 80:20 scrap cargo at $380/mt CFR, which is again significantly lower than the deal closed two weeks ago at $460/mt CFR.