Due to the lack of scrap demand, import scrap prices in Vietnam have remained relatively stable over the past week. Market sources report that sluggish steel sales and dropping international scrap prices are also contributing to the increased uncertainty. “The difference between offers and bids is still high. Producers are not interested in taking risks with high tonnages of scrap. Hence, demand for bulk cargoes is even lower,” a trader in Vietnam reported. Due to the consecutive typhoons in the region, there is congestion of ships at ports, market sources report, and this is also impacting freight costs.
Offers for Japanese H2 scrap to Vietnam have remained stable over the past week at $335-340/mt CFR. Bids from Vietnam are at $330/mt CFR and below, SteelOrbis hears. The appreciating Japanese yen is impacting Japanese sellers, limiting their appetite to conclude sales.
Ex-US bulk HMS I/II 80:20 scrap offer prices are still at $360-365/mt CFR, stable week on week, but some market sources report that the upper end is heard more frequently with each passing day. Bids from Vietnam are $10-20/mt lower than the offer prices. “Ex-US bulk cargoes are expensive right now for Vietnamese buyers,” a source added.
$1 = JPY 150.20