SE Asia: Imported Scrap Market Observes Mixed Trends

SteelMint learned from market participants that imported scrap prices in SE Asia have shown mixed trends in terms of prices. Very limited offers heard from US/UK suppliers on the expectation of further upward correction while South Korean steel mills continued scrap purchases from Japan at lowered bids.

Vietnam Steel mills observe increasing inquiries - According to sources, Vietnam based steelmakers have raised inquiries for scrap on limited stocks availability. Especially Northern Vietnam based steel mills turned active prior to the Lunar New Year holidays after a long gap of no purchasing. Participants expect that market may move up after Chinese New Year holidays.

Two deals were reported this week for Hong Kong origin HMS 1&2 (50:50) at USD 297/MT, CFR and USD 300/MT, CFR by Southern region based steelmakers with LC at sight.

While a Northern based steel mill booked Hong Kong material cargo at USD 308/MT, CFR for March shipment. Hong Kong scrap offers remained steady on a weekly basis.

On the other hand, expectations of Japanese scrap suppliers' remained at around USD 300/MT, CFR Vietnam for H2 despite yet another inching down in Japanese scrap bids presented by Hyundai Steel recently. Few bids for H2 stand at around USD 300-302/MT, CFR Vietnam.

Hyundai Steel books 40,000 MT Japanese scrap in recent bidding - According to reports, South Korean Hyundai Steel resumed open bidding for Japanese scrap after almost 6 months' gap. The steelmaker heard to have received total 120,000 MT volume of bids out of which 40,000 MT booked recently at corrected levels. Bid for Japanese H2 placed at JPY 28,500/MT, FoB (USD 260), down JPY 500/MT against last week.

Domestic scrap prices in Japan stand steady amid no news of price revision by Tokyo Steel yet. However, sluggish demand likely to put downward pressure on Japanese scrap prices.

Indonesia imported scrap offers move up - US origin containerized Shredded scrap is now being offered at around USD 308-310/MT, CFR up as against USD 300-305/MT levels last week. Limited quantity trades are being concluded in the market. Few offers for Busheling scrap reported at USD 345/MT, CFR. While HMS 1&2 from various origin assessed at around USD 280-290/MT, CFR Indonesia.

Low-grade scrap from Latin America was being offered at USD 250/MT, CFR Thailand.