Vietnam’s import scrap prices have moved up this week as the international scrap and steel markets have been affected by the outbreak of war in the Middle East. Increasing oil prices have led to higher sea freight rates, as reflected rapidly in sellers’ scrap export prices. While some trading has been done from Japan, a market source commented, “Vietnamese mills seem hesitant to make further purchases due to the ongoing uptrend in oil prices and freight.”
Ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have moved up by $5/mt week on week to $365-370/mt CFR. A source in Vietnam mentioned that a supplier was offering $364/mt CFR late last week, but there was no information regarding whether this price was accepted by any Vietnamese buyer. Most buyers think that the workable levels now for Vietnamese buyers are in the range of $350-355/mt CFR.
Meanwhile, a Japanese supplier managed to sell H2 scrap to Vietnam at $330/mt CFR late last week, $5/mt higher than the anticipated level. Further increases are expected amid the indirect impact of higher oil prices, and next workable levels for this grade in Vietnam are anticipated to be at around $335/mt CFR. Current HS grade scrap offers to Vietnam are at $385/mt CFR, sources from Japan added.
The Tokyo Bay FAS-based prices for H2 grade scrap are currently at JPY 46,500/mt, or $295/mt on dollar basis. The FOB-based export price remains at JPY 47,500/mt ($301/mt) for the grade in question.
The Tokyo Bay HS and shindachi grade scrap prices are at JPY 50,000/mt ($317/mt) FAS.
$1 = JPY 157.85
