Amid significant increases in the international scrap market and given Japanese mills’ desire to secure domestic scrap, Vietnamese buyers are facing price increases in their import scrap market. According to Reuters, around 80 percent of the crude oil Vietnam imported last year came from Kuwait, whose exports are currently frozen by Iran's closure of the Strait of Hormuz. Gasoline prices in Vietnam have risen by around 30 percent and diesel by about 40 percent since the start of the Iran war, while risks of shortages have prompted the Vietnamese government to encourage people to work from home to cut fuel consumption.
Ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have increased from the range of $375-380/mt CFR to $390-395/mt CFR. Market sources report no ex-US deals in Vietnam this week.
Japanese H2 scrap offers to Vietnam have also moved up, from $355/mt CFR to $375-380/mt CFR. Sources report that deals to Southeast Asia are almost on hold due to fluctuating freight costs, and that vessel availability is on the low side. Vietnamese buyers are resisting the price hikes and most mills have refused the adjusted offers. It is also heard that local Japanese scrap prices are moving up following the price adjustments made by domestic steel producers to prevent large scrap volumes from being exported.
