Imported scrap market in Vietnam turns silent after Kanto tender

Vietnam's imported scrap market remained quiet after Japan's monthly Kanto tender result was concluded at a lower level on 9th Oct. Vietnam buyers continued to bid lower for Japanese scrap. Thailand and Indonesian scrap prices remained stable on a w-o-w basis. In addition to it, there was a buzz in a market about a Thailand mill booking a bulk US scrap cargo late last week.

Disparity between offers and bids lower imported scrap trades in Vietnam: Japanese scrap trades have slowed down after Kanto tender concluded last week. Two Vietnamese steel mills had booked Japanese bulk cargoes at an average of JPY 28,406/t FAS basis, in lots of 10,000 t and 10,500 t respectively. Currently, the disparity between buyers' bid price and suppliers' offers has lowered the trades in Vietnam.

• In another deal, a Japanese origin bulk scrap cargo has been booked in mid of the week, containing HS and Shindachi at $328/t CFR Vietnam basis.
  
  
• SteelMint's assessment for Japanese bulk H2 stands at $292/t, CFR Vietnam level, down by $3/t CFR w-o-w. While assessment for bulk HMS (80:20) price assessment from USA remained firm at $307/t, CFR.
  
  

Indonesian importers remain quiet amid new regulations: Following new regulations that have come into effect from 1st Oct'20, stating stricter understanding of the origin of scrap materials, scrap suppliers have already started the new registration process. While many other supplier countries like HongKong and Australia got the notary certificate from Embassy, reported by a source.

• Offers for P&S in 20 ft containers stand steady at $315/t CFR Jakarta, while in 40ft containerized PNS is being remained at $310/t CFR Jakarta.
  
  
• The country has observed a rise in its scrap imports by 63% m-o-m on active trade activities. Imports were recorded at 122,510 t in Aug'20 as compared to 75,010 t a month ago, as per customs data maintained with SteelMint. Imports from Australia have increased sharply by 75% m-o-m to 31,613 t in Aug'20 as compared to just 18,068 t imported a month ago.
  
  

Thailand imported scrap offers remain firm w-o-w:

• Offers from South America for HMS 1&2 (80:20) scrap in containers remained firm at $270/t CFR Thailand, stable against last week.
  
  
• There is a buzz around in the market that a USWC origin bulk cargo has been booked in the preceding week, comprising of 30,000 t Shredded and HMS scrap, however, the deal price has not been confirmed at the time of publishing this report.
  
  
• Thailand has imported around 100,801 t of scrap in Aug'20, while, imports from USA have dropped significantly by 53% m-o-m.