The import scrap market in Vietnam has moved down over the past week amid the aggressive cheaper import billet offers from China seen across the region. SteelOrbis hears that Vietnamese buyers consider ex-Japan offers to be on the high side and are showing little interest in them. Meanwhile, the ongoing holidays in Japan have reduced the number of available offers from Japan to Vietnam. Meanwhile, South Korea has continued its slow demand for import scrap, with South Korean producers citing the lack of finished steel demand in the country. Domestic scrap is still more attractive for most South Korean producers.
SteelOrbis has learned that offers for Japanese H2 scrap to Vietnam are currently at around $365-370/mt CFR, declining by $3/mt on the upper end. However, Vietnamese sources report producers’ bids are approximately $5-10/mt lower than the offers.
Meanwhile, ex-US scrap is considered not attractive by Vietnamese buyers, with offers for ex-US bulk HMS I/II 80:20 scrap now at around $372-375/mt CFR Vietnam, SteelOrbis hears.
While there was hope for a recovery in the local South Korean scrap market at the beginning of this month, the low volumes being consumed have changed the price trend. Hyundai Steel has decided to start maintenance works at its Danjing rebar factory, the main South Korean rebar producer, starting from early September. The maintenance works are expected to end late this year. A source at a major producer said, “Hyundai Steel is not increasing its domestic scrap prices due to the maintenance, while other mills in South Korea also recognize that it is not the time for a price increase.” Still the weak demand in South Korea and the cheaper Chinese billet prices make it hard for South Korean producers to increase their raw material purchase prices.
Domestic HMS I scrap prices in the southern part of South Korea are now at around $305/mt DDP producer, relatively stable as compared to the prices recorded on July 26. Light A grade scrap which is considered as domestic H2 grade in South Korea is now at around $283/mt DDP, again in southern areas, while this grade is priced at around $246/mt DDP in the areas around the capital.