Vietnam’s import scrap market has remained relatively stable this week, though the heavy rains and typhoon weather in the country have been taking their toll on construction activities as well as on steel demand. Market sources report that steel demand in Vietnam may start to recover at the end of October and they are monitoring the situation closely. For now, due to sluggish demand and activity in the market, scrap prices are under pressure.
Following the ex-Japan H2 grade scrap sales to Vietnam closed at $325/mt CFR last week, offers are still at around $327-330/mt CFR. The increasing trend in the local Japanese scrap market is helping suppliers, while the depreciation of the Japanese yen is also supporting offers. However, Vietnamese buyers’ bids for this grade are now at around $320/mt CFR.
Ex-US bulk HMS I/II 80:20 scrap offers have moved sideways at $350/mt CFR Vietnam. Sources report that workable levels are still at around $340s/mt CFR.
Market sources report that local Japanese scrap prices have increased this week after Tokyo Steel’s announcements of a rise in its domestic scrap purchase prices. “The depreciation of the Japanese yen against the US dollar also pushed prices up,” a Japanese source commented. This week, the Tokyo Bay FAS-based prices for H2 grade scrap have increased by JPY 500/mt week on week to JPY 41,500/mt ($271/mt), up by $2/mt on dollar basis. The FOB-based export price remains at JPY 42,500/mt ($278/mt) for the grade in question, stable week on week.
The Tokyo Bay HS grade scrap price has moved up by JPY 500/mt or $2/mt week on week to JPY 45,500/mt ($297/mt) FAS, while the shindachi scrap price has also increased, by JPY 500/mt or $3/mt to JPY 45,000/mt ($294/mt) FAS.
$1 = JPY 152.94
