The Vietnamese scrap market has continued to remain silent over the past week due to the possible removal of antidumping duty on steel billet imports as of March 22 by the Ministry of Industry and Trade. According to a Vietnamese source, “[This decision] will have a big impact on all steel mills [in Vietnam]. They will have to face more competition from billets from nearby Southeast Asian countries such as Indonesia, Malaysia and Thailand.” The duties for import billet were standing at 11.3 percent and for bar and wire rod were at 6.4 percent until March 22, 2023. No announcement any extension of these duties has been heard so far, which has impacted sentiments.
As a result, most Vietnamese mills have remained quiet in terms of booking scrap, instead monitoring the market to see the response to the possible announcement.
Some Vietnamese buyers aim to achieve $455/mt CFR for Japanese shredded and $460/mt CFR for HS and shindachi scrap. These levels are $5/mt lower than last week’s bids by mills. According to a Vietnamese source, it would be difficult to secure materials at these levels. No fresh prices for H2 have been available so far due to the higher gap between offers and bids. Buyers will definitely be aiming for below $445/mt CFR.
A Vietnamese trader is offering ex-US containerized HMS I/II 80:20 scrap at $420/mt CFR, $20/mt lower than the levels recorded last week. No ex-US bulk HMS I/II 80:20 scrap offer has been heard this week yet.
As of today, March 23, Tokyo Bay FAS-based prices for H2 grade scrap are JPY 53,000-53,500/mt ($403-407/mt), down JPY 500/mt on the lower end but $4/mt higher on dollar basis week on week due to the fluctuation of the exchange rate. This new level signals JPY 54,000-54,500/mt ($411-415/mt) FOB for this grade.
Tokyo Bay FAS prices for HS grade scrap are now in the range of JPY 56,000-57,000/mt ($426-434/mt), again JPY 500/mt down on the lower end but $4/mt higher on dollar basis week on week. Meanwhile, for shindachi scrap the price stands at JPY 56,000-56,500/mt ($426-430/mt), down JPY 1,000/mt or $4/mt up as compared to last week.
$1 = JPY 131.41