Vietnam’s demand for import scrap has remained sluggish this week as the rainy season takes its toll, while construction activity and rebar demand in the country remain slow. The reluctance of Vietnamese buyers to buy imported scrap has caused a sideways movement in scrap import prices this week, but market sources believe that a further decline may be seen in prices as of next week.
Offers from the US West Coast to Vietnam for bulk HMS I/II 80:20 scrap are at $400/mt CFR, $5/mt lower on the upper end as compared to last week. No deals have been done from the US West Coast to Vietnam this week, sources report.
As previously reported by SteelOrbis, containerized ferrous scrap prices on the US West Coast have continued to drop this week. As import prices in Asia and containerized ocean freight rates remain high, exporters continue to protect their margins. In Los Angeles, the price of HMS I/II 80:20 fell by $5/mt to $335/mt FAS Long Beach port, containerized P&S 5ft decreased by the same amount to $350-355/mt FAS, and containerized shredded also fell by the same margin to $355-360/mt FAS.
According to sources, Vietnam has bought ex-Japan H2 grade scrap at $370/mt CFR, moving sideways week on week. Market sources report that Japanese scrap prices are set to decline in the coming week, “Japanese suppliers have financial issues, hence they may accept lower prices to maintain cash flow,” a source commented.
