Vietnamese buyers have faced higher offer prices from import scrap supplier regions in the current week amid the ongoing upward push observed in the international scrap markets as well as the competition with other buyers, while Japan’s own local market has also moved up. Japanese EAF-based producers are keeping their prices strong aiming to secure scrap flow for their yards, while Bangladesh is accepting price increases. Vietnam’s energy system continues to rely heavily on fossil fuels, particularly coal and gas-fired power generation, while alternative energy sources have not yet expanded at a pace sufficient to offset this dependence. As global supply disruptions intensify due to the ongoing US-Israeli war on Iran, these structural vulnerabilities are becoming increasingly evident.
Ex-US bulk HMS I/II 80:20 scrap offers to Vietnam have increased from the range of $390-395/mt CFR to $395-400/mt CFR. Market sources have not reported any ex-US deal in Vietnam this week.
Japanese H2 scrap offers to Vietnam have also moved up, from $375-380/mt CFR to $385/mt CFR. As compared to last month (March 13), offers prices of H2 grade scrap from Japan to Vietnam are now $40-45/mt higher.
As SteelOrbis reported earlier this week (March 30), the Tokyo Bay FAS-based prices for H2 grade scrap remained stable since last week at JPY 48,500/mt ($304/mt with the exchange rate at $1 = JPY 159.53). The FOB-based export price remained at JPY 49,500/mt ($310/mt) for the grade in question.
