While there are rumours of new deep sea scrap deals done by Vietnam, market sources report that the financial and real estate-related crises have continued in the country. “I do not anticipate a real recovery in the short term. It may continue until the end of this year” a Vietnamese source commented.
Offers for ex-Japan H2 grade scrap to Vietnam have increased by $5/mt to $385-390/mt CFR over the past two weeks. For this grade, some buyers’ bids are at $375-380/mt CFR, showing that buyers’ resistance has been broken somewhat.
Also, a Vietnamese buyer concluded a deal for shredded scrap from Japan at $415/mt CFR, higher than Vietnamese mills’ bids at $407-408/mt CFR two weeks ago.
There have been reports of ex-US West Coast bulk HMS I/II 80:20 scrap cargoes bought at $400/mt CFR last week, while for an ex-Australian cargo the HMS I/II 80:20 scrap price was reported at $405/mt CFR. These levels indicate a decline for the US segment of $20/mt as compared to the offers shared on June 23.
As of today July 5, Tokyo Bay FAS-based prices for H2 grade scrap are still at JPY 48,500-49,500/mt ($336-343/mt). Due to the ongoing depreciation of the Japanese yen against the US dollar, dollar-based prices have moved down by $3/mt since June 23. This level signals JPY 49,500-50,500/mt ($343-349/mt) FOB for this grade.
Tokyo Bay FAS prices for HS grade scrap are now in the range of JPY 52,500-53,500/mt ($363-370/mt), while prices for shindachi scrap are at JPY 50,500-51,500/mt ($349-356/mt).
$1 = JPY 144.50
