Over the past week, import scrap prices in Vietnam have remained relatively stable, with little change observed in Vietnamese mills’ appetite for scrap. Alternative products are still exerting pressure on import scrap prices, in particular on prices for ex-US bulk cargoes. “Due to the uncertainties observed in the Asian steel markets, the risks involved in buying large tonnages are limiting Vietnamese producers’ interest in ex-US bulk cargoes,” a Vietnamese source reported. As regards Japanese origin scrap, the suppliers want to increase their prices but the elevated freight costs make this difficult to do, but they can afford to wait in any case because they already have good order books.
Offers for Japanese H2 scrap to Vietnam have remained stable over the past week at $335-340/mt CFR. Following the bookings closed last week for ex-Japan H2 grade scrap at $335/mt CFR, bids from Vietnam have declined to $330/mt CFR, SteelOrbis hears. Meanwhile, Japanese sources report that Japanese scrap suppliers are in no rush to conclude sales as they have filled their order books until mid-January. A source described the situation by his words of “no desperation seen in the market”.
Ex-US bulk HMS I/II 80:20 scrap offer prices are currently at $360-365/mt CFR, moving down by $5/mt on the lower end. The alternative of cheaper semi-finished steel is still impacting deep sea scrap prices, and the international scrap market is not providing any support at the moment. Vietnamese mills’ interest in ex-US bulk cargoes remains limited.
Tokyo Bay FAS-based prices for H2 grade scrap have moved sideways week on week at JPY 43,000/mt ($278/mt), moving up by $1/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 ($285/mt) for this grade, $2/mt higher than last week.
Ex-Japan HS scrap prices are still standing at JPY 47,000/mt ($304/mt) FAS, up by $1/mt on US dollar basis. Shindachi scrap quotations have remained stable at JPY 46,000/mt ($298/mt) FAS, increasing by $2/mt week on week.
$1 = JPY 154.41