Vietnam’s import scrap market is following the global downward trend, while Vietnamese buyers’ focus has changed once again. “Since scrap prices are falling, we are not interested in closing big bulk deals right now. Instead, we prefer containerized materials,” a source commented. With the support of the stimulus packages announced by the government, mainly for infrastructure, Vietnam is targeting seven percent economic growth. However, according to local news agencies, some difficulties are observed in the construction segment, which is operating more slowly than expected.
Japanese H2 offers to Vietnam have moved down to $400-405/mt CFR, from $410-420/mt CFR recorded at the end of last week. While this level is closer to the $400/mt CFR buyers shared as bids last week, at the moment the tradable level has fallen below this level. Japanese sellers will need to cut prices further to stimulate trading, market sources believe. There are no deals done yet for ex-Japan scrap and prices from other suppliers are better.
A bulk HMS I/II 80:20 scrap cargo from the US West Coast has been offered to Vietnam at $395-400/mt CFR, from last week’s offer level at $430/mt CFR. Currently, ex-US West Coast bulk offers to Vietnam are lower than buyers’ bids at $400-410/mt CFR last week. However, the preference of buyers has once again switched to containerized material.
A Vietnamese producer has concluded a deal for ex-US HMS I/II 80:20 scrap in containers at $370-375/mt CFR this week, almost similar to levels in a deal three weeks ago, only $5/mt lower on the upper end.
Also, weak demand in traditional sales destinations may once again push European bulk scrap sellers to sell to Southeast Asia. The tradable level is assessed at $380/mt CFR Vietnam or even slightly below, taking into account the current collection prices.
An ex-Hong Kong cargo for HMS I/II 50:50 scrap by bulk to Vietnam was closed at $390/mt CFR. The previous offers from Hong Kong to Vietnam were at $405/mt CFR Hai Phong two weeks ago, but were considered too high at that time.