Vietnam’s demand for scrap has recovered slightly ahead of the national holidays in the country. While prices have increased further this week, some sources in the region are not sure if the increase is sustainable and instead expect a downward correction next month. The recent price declines in China are also not expected to help the Vietnamese scrap market, exerting pressure on scrap prices.
Ex-Japan H2 scrap offers to Vietnam have increased by $5-10/mt over the past week to $315-325/mt CFR. Market sources report that the workable levels for this grade are in the range of $310-315/mt CFR.
Meanwhile, ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have remained stable this week in the range of $350-355/mt CFR, while workable levels are at around $340-345/mt CFR.
Market sources report that Russian A3 grade scrap offers to South Korea and Vietnam are at $315/mt CFR and $310/mt CFR, respectively. No deal was heard for this grade this week.
Meanwhile, the Tokyo Bay FAS-based prices for H2 grade scrap are closing the week at JPY 39,500/mt ($266/mt), unchanged as compared to the levels reported by SteelOrbis on August 8. The FOB-based export price remains at JPY 40,500/mt ($272/mt) for the grade in question.
$1 = JPY 148.67
