Over the past week, import scrap prices in Vietnam have dropped by $5-10/mt. However, little interest is shown now in lower prices. Against the advantage of the depreciating Japanese yen, freight costs are rising for Vietnamese buyers. Additionally, the negative trend seen in Chinese finished steel and semi-finished steel prices are impacting scrap prices, causing scrap buyers to monitor the situation and make lower bids to suppliers.
Offers for Japanese H2 scrap to Vietnam have moved down by another $10/mt over the past week to $335-340/mt CFR. The depreciation of the Japanese yen allows more room to exporters on CFR basis, a Japanese source stated, adding, “They are now more competitive. However, buyers in Taiwan, Vietnam and Bangladesh are in wait-and-see mode.” A Vietnamese trader commented that current Japanese H2 scrap prices are at around $300/mt FOB, going on to say, “But many suppliers are complaining that there is a shortage of vessels. Freight has increased a lot. It is now at around $45-50/mt to Vietnam.” However, some buyers still confirm they have concluded ex-Japan bookings this week at $335/mt CFR for H2 grade.
Ex-US bulk HMS I/II 80:20 scrap offer prices are currently at $365/mt CFR, $5-10/mt lower than the prices recorded last week. Market sources are not sure if any Vietnamese producer can accept this level though. “There is still significant pressure felt in the market due to the declining Chinese prices. This week, billet offer prices from China decreased to $470-480/mt CFR Southeast Asia,” a Vietnamese source commented.
Tokyo Bay FAS-based prices for H2 grade scrap have moved up by JPY 500/mt week on week to JPY 43,000/mt ($277/mt), down by $2/mt on US dollar basis due to the changes in the Japanese yen-US dollar exchange rate. This level shows that FOB prices are now at JPY 44,000/mt ($283/mt) for this grade, $3/mt lower than last week.
Ex-Japan HS scrap prices are standing at JPY 47,000/mt ($303/mt) FAS, up by JPY 500/mt or down by $2/mt on US dollar basis. Shindachi scrap quotations have remained stable at JPY 46,000/mt ($296/mt) FAS, dropping by $6/mt week on week.
$1 = JPY 155.33
