Vietnam’s import scrap market is still characterised by slow activity. Market players report that many construction projects are frozen, while end-user demand for steel is on the low side. According to one Vietnamese source, “Some mills are seeking scrap but their bid prices are still low.”
In the current week, Vietnamese mills voice their bids for Japanese HS grade scrap at $405-410/mt CFR, while their bids for shredded scrap stands at $395-400/mt CFR. SteelOrbis hears that suppliers do not accept such levels for now.
Vietnamese buyers’ bids for ex-Hong Kong HMS 50:50 scrap are also at $350-360/mt CFR, but offers from Hong Kong for this grade are in the range of $375-380/mt CFR.
Meanwhile, offers from the US West Coast for bulk HMS I/II 80:20 scrap cargoes are at $395-400/mt CFR.
As of today June 1, Tokyo Bay FAS-based prices for H2 grade scrap are at JPY 47,000-47,500/mt ($338-342/mt). This new level signals JPY 48,000-48,500/mt ($345-349/mt) FOB for this grade.
As a result, the SteelOrbis reference prices for ex-Japan H2 scrap have increased by JPY 200/mt on the lower end to JPY 48,000-48,300/mt ($345-348/mt) FOB, with dollar-based reference prices moving up by $4/mt week on week. The lower end of the range is now represented by the Tokyo Bay prices.
Tokyo Bay FAS prices for HS grade scrap are now in the range of JPY 50,000-52,000/mt ($360-374/mt), while prices for shindachi scrap are at JPY 48,000-50,000/mt ($345-360/mt).
$1 = JPY 138.97