Over the past two weeks, the Vietnamese scrap market has maintained its silence. Domestic scrap prices are found more attractive by Vietnamese buyers. The local scrap supply volume is sufficient, while billet prices are dropping after the cancelation of the import tax. One Vietnamese source commented, “There are only a few deals done by FDI [foreign direct investment] mills such as POSCO and Tung Ho. All other producers are very silent and keep buying locally.” While some re-rolling mills are considering importing billets, SteelOrbis understands that the inquiries made so far are just to test prices, without any actual deals yet.
Japanese bulk H2 scrap offers to Vietnam are around at $390/mt CFR in the current week, moving down from $420-425/mt CFR recorded on April 14. There are no deals done at these levels. According to market players, domestic scrap prices are around $380/mt delivered in Vietnam, and so Vietnamese mills are not expected to accept higher levels for now.
Currently, ex-US bulk HMS I/II 80:20 scrap offers are at around $405-410/mt CFR, failing to attract interest from buyers.
Ex-Hong Kong HMS 50:50 scrap prices to Vietnam are in the range of $375-380/mt CFR.