The import scrap market in Vietnam has gained some strength this week. Despite the decline observed in the Japan-based Kanto scrap export tender, the current offer levels from Japan are higher than Vietnamese buyers’ bids. Not much has changed as regards ex-US scrap offers, though the uptrend observed in the international scrap market this week may cause ex-US bulk offers to move up in the coming week.
Offers for Japanese H2 scrap to Vietnam have increased slightly over the past week from $333-335/mt CFR to $335/mt CFR. Buyers’ bids are still at around $330/mt CFR. Market sources point to the closing of the Kanto tender at JPY 42,739/mt FAS or JPY 43,739/mt FOB ($287/mt FOB). With the recent increase in freight to $40-50/mt between Japan and Vietnam, the CFR equivalent of the Kanto tender would be $327-337/mt CFR Vietnam, which still creates some difficulties for Vietnamese buyers.
Ex-US bulk HMS I/II 80:20 scrap offer prices have remained stable over the past week at $360/mt CFR, with some sources reporting there is a tendency towards an upward push on prices in the market. Vietnamese mills’ ideas of a workable level for this grade have changed over the past week and their bids now are approximately $5/mt lower than the offers.