Vietnam’s import scrap market has continued to move down this week, following the general sentiments observed in the international scrap market. Lack of support from the steel segment is exerting pressure on scrap quotations, as well as the lack of competition between buyers. Demand in the scrap supplier regions is also on the low side, sources report.
Offers from the US West Coast to Vietnam for bulk HMS I/II 80:20 scrap have softened slightly from $385-390/mt CFR to $380-385/mt CFR. There have been no deals done from the US West Coast to Vietnam this week, sources report. The new offer levels are the prices buyers had targeted last week, while the negative sentiments in the international scrap market and slower demand received by all US West Coast-based buyers are exerting downward pressure on workable levels.
As previously reported by SteelOrbis, the price of containerized HMS I/II 80:20 has fallen by $10-15/mt to $310-315/mt FAS Long Beach port, while containerized P&S 5ft has dropped by the same margin to $325-335/mt FAS, and the price of containerized shredded has decreased to $330-340/mt FAS. Some contacts report HMS I/II 80:20 being quoted at as low as $305/mt FAS, while others project a price of $295/mt FAS as early as Monday.
Market sources report that the buyer in the July Kanto scrap export tender was Vietnam, with the total tonnage being 15,000 mt. The highest bid was at JPY 52,508/mt ($323/mt) FAS, only JPY 1,998/mt lower than last month. The dollar-based price moved down by $17/mt from last month’s $340/mt FAS, taking into account exchange rate changes. The FAS prices translate to JPY 53,508/mt FOB or $329/mt FOB, $17/mt lower compared to last month. With the approximate $38/mt freight between Japan and Vietnam, this level indicates a $3/mt drop from last week’s $370/mt CFR Vietnam for H2 grades.
