Vietnamese buyers’ recent scrap purchases from the US West Coast have reduced their appetite for import scrap from this source, while decreasing prices in the Japanese scrap export segment have also meant less interest in ex-US scrap. Sources report that construction demand in Vietnam has not recovered as initially expected amid the volatile Chinese market, limiting scrap demand in Vietnam.
After buying several ex-US West Coast bulk HMS I/II 80:20 scrap cargoes, offers from the US West Coast to Vietnam are now in the range of $400-405/mt CFR. There have been no deals done from the US West Coast to Vietnam this week, sources report. As previously reported by SteelOrbis, bulk scrap prices to US West Coast docks fell by $25/gt in the previous two weeks, while this week HMS I remained unchanged at $250-260/gt delivered to export yard while P&S 5ft was unchanged at $270/gt delivered and shredder feed was at $200-210/gt delivered. San Francisco Bay Area prices for bulk scrap stand $5/gt below these Southern California levels.
According to sources, Vietnam has bought ex-Japan H2 grade scrap at $370/mt CFR, moving down by $10/mt week on week. Market sources report that expectations regarding the Kanto tender due to be held on June 10 are for a decrease in price and this is impacting Japanese sellers’ current pricing strategies.
Meanwhile, SteelOrbis has been informed that South Korean steel mill POSCO also bought a cargo from Japan, with the HS scrap price at $388/mt CFR, down $13/mt from their previous deal done from Japan last week.
