Some reductions have been recorded in Vietnamese mills’ import scrap procurement prices over the past week. Offers from the US are still considered to be high, while Japanese suppliers are now offering slightly lower quotations since the exchange rate gives them some freedom. On the other hand, Vietnam is still checking some alternative sources, such as containerized material or scrap of Australian and Hong Kong origin.
As of today, offers for ex-US HMS I/II 80:20 to Vietnam are at $665-670/mt CFR, indicating a $25-30/mt decline over the past two weeks. Vietnam still considers these levels to be on the high side and so is focusing on containerized HMS I/II 80:20 scrap. Accordingly, deals for containerized HMS I/II 80:20 scrap have been closed in the range of $570-580/mt CFR Vietnam this week, $20/mt higher than the levels recorded on March 10.
Similarly, Australian HMS I/II 80:20 scrap offers to Vietnam are at around $640/mt CFR.
Meanwhile, offers from Japan to Vietnam for H2 grades are currently at around $610-620/mt CFR, indicating a $5-10/mt decrease week on week. The slight downward revision of Japanese H2 scrap prices is the result of the depreciation of the Japanese yen against the US dollar. The Japanese yen hit a six-year low at approximately 120 to the dollar this week. “Also, Vietnamese and Taiwanese buyers are maintaining a wait-and-see stance and are in no rush to conclude scrap bookings,” a Japanese source commented.
Additionally, SteelOrbis has learned that there were ex-Hong Kong deals for HMS I/II 50:50 scrap at $605/mt CFR this week.
Phan Duc Hieu, a member of the Vietnamese National Assembly’s Economic Committee, stated, “The escalating conflict between Russia and Ukraine is entailing a spike in the price of many commodities and input materials, putting Vietnam’s inflation under big pressure.” Due to the surge recorded in international fuel prices, petrol prices in Vietnam are expected to increase further. But the existing two oil refineries are meeting 70 percent of Vietnam’s domestic demand, and administrative procedures are being advanced so that a third one will enable Vietnam to supply a sufficient volume to its domestic market. The country has also increased its crude oil drilling and currently meets 50 percent of production demand, which will support the country against the rises observed in the international market.
