Vietnamese import scrap market has recorded a slight increase in the current week, though workable levels for ex-US and ex-Japan scrap have not changed. Market sources report that buyers in Vietnam are still cautious, while the rainy season has been impacting steel demand. Over the past two weeks, Vietnam’s steel and scrap markets have seen a mix of downward pressure and opportunities. The antidumping investigations targeting Vietnamese steel and widening international protectionism have raised the concerns of Vietnamese exporters. In the first nine months of the year, Vietnam’s steel imports decreased by 8.8 percent year on year to 11.21 million mt, while its scrap import shipments amounted to 4.59 million mt in the given period, up by 29.7 percent year on year. Meanwhile, the Vietnamese dong has continued to depreciate against the US dollar, raising import costs for raw materials but modestly improving export price competitiveness.
Current offers from Japan to Vietnam are at $325-328/mt CFR, increasing by $3/mt on the upper end. The workable level for this grade is still at $320/mt CFR, while slightly softer bids are also heard from some cautious buyers. As SteelOrbis reported previously, Japan’s Kanto scrap export tender was closed with a small price increase on Japanese yen basis, with a $5/mt rise in the dollar-based price.
Ex-US bulk HMS I/II 80:20 scrap offers have moved up by $5/mt on the lower end to $345-350/mt CFR Vietnam. Sources report that workable levels are at around $340/mt CFR.
This week, the Tokyo Bay FAS-based prices for H2 grade scrap have increased by JPY 500/mt week on week to JPY 41,000/mt ($269/mt), down by $2/mt on dollar basis. The FOB-based export price remains at JPY 42,500/mt ($278/mt) for the grade in question, up by $1/mt week on week on US dollar basis.