As Vietnam’s demand for import scrap recovers ahead of the holiday season due to start on February 17, Vietnamese buyers are also exerting some pressure on quotations. Market sources report that overall scrap demand in Asian countries is lower than usual and this dynamic is providing leverage to others willing to buy scrap. The gap between the desired price levels of buyers and sellers remains noteworthy despite the livelier interest from Vietnam.
Ex-US bulk HMS I/II 80:20 scrap offers to Vietnam are down by $5/mt on the upper end week on week and are now largely at around $350/mt CFR. No deal has been done at this level this week. Market sources report that the workable levels for ex-US scrap are at around $340-345/mt CFR.
Meanwhile, Japanese H2 scrap deals in Vietnam were done at around $328/mt CFR, increasing by $3/mt week on week, before dropping back to $325/mt CFR late in the week. Offers for this grade are still in the range of $325-330/mt CFR, while buyers are now aiming for lower than $325/mt CFR.
The Tokyo Bay FAS-based prices for H2 grade scrap have remained stable since last week at JPY 43,000/mt ($272/mt), $1/mt lower on dollar basis. The FOB-based export price remains at JPY 44,000/mt ($278/mt) for the grade in question, down by $1/mt on US dollar basis.
The Tokyo Bay HS and shindachi grade scrap prices have also moved sideways, at JPY 47,000/mt ($297/mt) FAS, down by $1/mt on US dollar basis over the past week.
$1 = JPY 158.13
