Vietnamese steel producers’ demand for scrap has remained on the low side over the past week, despite scrap suppliers’ firm price offers. The ex-US scrap deals done this week indicate that buyers’ resistance has been successful, causing US suppliers to accept lower levels in deals. On the other hand, the appreciation of the Japanese yen against the US dollar has caused a slight increase in Japanese H2 scrap prices. Market sources report that steel demand in Vietnam remains sluggish, curbing steel mills’ willingness to build up scrap inventories. The uptrend in the international scrap market - in particular the higher price levels accepted by Turkey - provides support for suppliers’ firm price strategy.
Ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have remained unchanged this week in the range of $350-355/mt CFR. Sources report that a couple of deals for this grade were closed in the range of $335-340/mt CFR, reflecting the successful resistance of buyers.
Vietnam’s Japanese H2 scrap purchases have been closed at $325-330/mt CFR over the past week, indicating a $2.5/mt rise on average week on week. Market sources report that offer prices for this grade are currently at around $330/mt CFR and above, though Japanese sources also report that the significant price gap between buyers and sellers continues to present an obstacle to trading. “The weakness in overseas markets has led to limited deals being done for Japanese scrap due to this gap,” a Japanese source commented.
The Tokyo Bay FAS-based prices for H2 grade scrap have remained stable over the past two weeks at JPY 43,000/mt ($277/mt), up by $3/mt on dollar basis. The FOB-based export price remains at JPY 44,000/mt ($283/mt) for the grade in question, up by $2/mt.
The Tokyo Bay HS and shindachi grade scrap prices have also moved sideways, at JPY 47,000/mt ($303/mt) FAS and JPY 46,500/mt ($300/mt) FAS, both up by $4/mt on US dollar basis, respectively.
$1 = JPY 155.22