Vietnamese buyers focus on Japanese scrap, as prices still move down

Thursday, 29 September 2022 16:16:07 (GMT+3)   |   Istanbul
       

While import scrap prices in Vietnam have continued to move down over the past week, offers from Japan are once again considered to be attractive by buyers. Japanese scrap export prices are expected to remain under pressure as the domestic flow of scrap in South Korea, the main buyer of Japanese scrap exports, has recovered significantly. Vietnam is still performing better than most countries with the support of its infrastructure investments, which have grown nearly seven percent this year. Most countries are looking at gloomier prospects this year due to the global spread of inflation and increased risks of a recession. On the other hand, the slowing Chinese economy is negatively impacting Vietnam.

Japanese H2 offers to Vietnam have decreased to $385-400/mt CFR, from the range of $405/mt CFR recorded last week. SteelOrbis has learned that there is a deal done from Japan to Vietnam for H2 grade scrap this week at $382/mt CFR. As SteelOrbis reported last week, this decline in Japanese scrap export quotations was anticipated after the price cut announcements made by Japan’s Tokyo Steel and South Korea’s Hyundai Steel late last week. According to a Vietnamese source, “Japanese scrap prices are now once again considered to be competitive and hence Vietnamese mills are showing interest in Japanese H2.”

Meanwhile, Tokyo Bay FAS based prices are at JPY 48,000-50,500/mt ($332-349/mt) for H2 grade scrap, signaling JPY 49,000-50,500/mt ($339-349/mt) FOB for this grade. Meanwhile, Tokyo Bay FAS prices are at JPY 51,000-53,000/mt ($352-366/mt) for HS grades and at JPY 50,000-52,500/mt ($346-363/mt) for shindachi grades. On September 16, Japanese FAS based scrap prices were at JPY 51,000/mt ($356/mt) for H2 grades, supporting the idea that Japanese export scrap quotations are under pressure.

This week, there are some rumours of bulk HMS I/II 80:20 scrap cargoes sold from the US West Coast to Vietnam at $410/mt CFR. But market players state that this is unlikely, “A cargo was sold to India at $415/mt CFR - full shredded - and the information could be misinterpreted,” a SteelOrbis contact commented. Last week, bulk HMS I/II 80:20 scrap cargoes from the US West Coast were offered to Vietnam at $390/mt CFR and an ex-Australia bulk cargo for this grade was sold at $385/mt CFR.

A Vietnamese producer has bought ex-US HMS I/II 80:20 scrap in containers at $355/mt CFR, which is $5-10/mt lower than the offers shared last week in the range of 360-365/mt CFR. The price in the deal is $5/mt higher than the buyers’ bids shared last week.

An ex-Hong Kong cargo for HMS I/II 50:50 scrap by bulk to Vietnam was offered at $385-390/mt CFR this week, $5/mt lower than the levels at $390-395/mt CFR last week.

$1 = JPY 144.71


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