Vietnam’s import scrap market has remained relatively stable. Despite the increases reported in the ex-US scrap segment, market sources report that there is little change in the workable prices. The depreciating Japanese yen is exerting pressure on offers received from Japanese sellers this week. Hence, Japanese offer prices have remained stable, while US-based suppliers have increased their offers slightly this week. The lackluster interest of Vietnam for scrap continues, market sources report that low rebar demand is the reason.
Over the past week, offers for Japanese H2 scrap to Vietnam have remained stable in the range of $310-315/mt CFR. Market sources report that buyers’ workable price ideas have also been kept unchanged at around $310s/mt CFR.
Meanwhile, ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have moved up by $5/mt this week to $340-345/mt CFR, workable levels remain at $335/mt CFR.
South Korea has bought a cargo from Russia with A3 grade scrap at $307-309/mt CFR. No ex-US or ex-Japan deal has been heard in South Korea this week as the country’s steel industry is struggling with the lack of demand. Local scrap procurement prices in South Korea are believed to have bottomed out, looking for a rebound. As of this week, most suppliers in the country have left the market for holidays as well as the many auto-related manufacturing sites. Holiday is reportedly around two weeks. Market sources expect a price rally in August.
As SteelOrbis mentioned in its report regarding Taiwan, depreciation of the Japanese yen against the US dollar is causing a decline in FOB-based quotations. The Tokyo Bay FAS-based prices for H2 grade scrap are still at JPY 40,500/mt ($272/mt), down by $2/mt as compared to the levels recorded last week. The FOB-based export price remains at JPY 41,500/mt ($279/mt) for the grade in question, down by $2/mt.
The Tokyo Bay HS grade scrap price has moved sideways week on week to JPY 44,000/mt ($295/mt) FAS as shindachi scrap price is at JPY 44,500/mt ($299/mt) FAS, down $2/mt as compared to July 25.
$1 = JPY 148.71
