Vietnam’s import scrap market remains weak, continuing to move down week on week. Market sources report that cheaper billet alternatives are still taking their toll on the market, while international scrap prices are also moving down sharply this week. A Vietnamese source commented, “Domestic steel prices are also declining in Vietnam.” Although Asian buyers are exerting pressure on scrap prices, a Japanese source remarked that Japan cannot follow the steel fall in the global scrap market yet.
SteelOrbis has learned that offers for Japanese H2 scrap to Vietnam are currently at around $360-365/mt CFR, declining by $5/mt week on week. Ex-Japan shindachi and HS scrap offers to Vietnam are in the range of $385-390/mt CFR. Both these prices are considered high by Vietnamese buyers.
“So, Vietnamese mills prefer working with Hong Kong as their main supplier nowadays,” a source reported on Friday. Hong Kong-based suppliers can achieve $340-345/mt CFR for HMS 1/2 grade scrap bulk cargoes to Vietnam, while for oversize P&S grades buyers are willing to pay $345/mt CFR. “This is working for both sides. Due to container booking problems, Hong Kong-based suppliers are also facing difficulties in shipping materials to other markets. They do not have much option but to sell to Vietnam at low price levels,” a source said.
Meanwhile, buyers’ price ideas for ex-US containerised HMS I/II 80:20 scrap are at $330-335/mt CFR Vietnam. Offers for ex-US bulk HMS I/II 80:20 scrap are now at around $367-370/mt CFR Vietnam, SteelOrbis hears.
Currently, Tokyo Bay FAS-based prices for H2 grade scrap are at JPY 46,000/mt ($315/mt). This level shows that FOB prices are at JPY 47,000/mt ($322/mt) for this grade. Both prices have declined by JPY 1,000/mt or $5/mt since August 8.
Meanwhile, ex-Japan HS scrap prices are standing at JPY 50,000/mt ($342/mt) FAS and shindachi scrap prices are at JPY 50,500/mt ($346/mt) FAS.
$1 = JPY 146.03