Ahead of the long holiday due to start on February 17, Vietnamese producers are expected to start restocking scrap, though their resistance to higher offers persisted this week. Market sources report that a cautious stance has been maintained by Vietnamese steelmakers, while the fundamentals in the scrap supplier segments have been strengthening. There is a strong upward push from the US, while the Japanese yen’s appreciation is causing ex-Japan offers to remain firm. As a result, Vietnam’s import scrap market is observed to be under upward pressure.
Ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have remained stable at $350/mt CFR. No deal has been done at this level this week. Market sources report that bids from buyers have softened a little (by around $5/mt) to $335-340/mt CFR. The large gap between sellers’ and buyers’ expectations show that Vietnamese buyers are unwilling to follow the international scrap price trend, which is upward not only due to Turkey’s increased import prices, but also given the reduced availability in the US due to the harsh winter conditions which are disrupting scrap flow to export yards.
Meanwhile, Japanese H2 scrap offers to Vietnam are at around $330/mt CFR, though there were deals done at around $325/mt CFR earlier in the week. Currently, buyers are more inclined to close deals closer to $320/mt CFR, market sources report.