As mentioned by SteelOrbis last week, Vietnamese steelmakers have been facing higher scrap price offer levels from the US West Coast. The positive sentiment surrounding the local US scrap market, which is expected to move up by at least $20-30/mt during the February buy-cycle, is supporting the offers shared by Asian suppliers. In Japan, sources report that a shortage of scrap availability is observed but the scrap demand received from Japan-based EAFs is also declining, resulting in a balanced market. Some Vietnamese market players think that Vietnam’s appetite for scrap may improve after the long holiday (February 14-22).
Ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have moved up by $10/mt week on week to $360/mt CFR. No deal has been done at this level this week. Sources report that the US West Coast has been hit by the recent snowstorms, causing suppliers to increase their export offers. Market sources report that bids from buyers have remained in the range of $335-340/mt CFR ahead of the holiday.
Meanwhile, Japanese H2 scrap offers to Vietnam have increased by $5/mt this week to around $340s/mt CFR. No new deal has been heard. Sources report that HS grade scrap offers to Vietnam have been at $365/mt CFR in the current week.
The Tokyo Bay FAS-based prices for H2 grade scrap have remained stable since last week at JPY 43,000/mt ($274/mt), $2/mt higher on dollar basis. The FOB-based export price remains at JPY 44,000/mt ($280/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 ($299/mt) FAS, up by $2/mt over the past week.
$1 = JPY 157.10