SE Asia: Imported scrap offers edge up, market awaits Kanto tender outcome

Looking at the current global market scenario, imported scrap prices into Vietnam have also surged to a new high. Meanwhile, domestic prices followed the global cues.

On the other hand, market players are waiting for the Kanto tender outcome of this month. Japan's monthly Kanto Tetsugen ferrous scrap export tender is scheduled for 9 Mar'22, sources informed SteelMint. Market sources are expecting a sharp hike in bid against that seen in February. "Japanese suppliers will surely look for high bidders and will not consider Vietnam's low bid," said a source.

Last month, a total of 10,000 t of H2 scrap were awarded at an average price of around JPY 55,845/t ($483/t) FAS, up significantly by JPY 4,862 ($42/t) m-o-m, SteelMint learnt from sources.

In a recent deal concluded by the Vietnamese steel mill, around 20,000 t of Japanese H2 material was booked at $580/t CFR levels last week. Fresh offers for the same from Japan are quoted at $590/t CFR levels.

Meanwhile, US-origin bulk HMS offers are heard at $600/t CFR Vietnam levels.

"Japanese imported scrap prices are likely to increase further by $20-30/t", said a reliable market source. Vietnam buyers have no choice as they need to book Japanese material at any cost owing to its premium quality and traditional suppliers, he added further.

Market highlights-

Domestic scrap prices up on seasonal demand: Prices for H1 and H2 grade ferrous scrap in Vietnam are assessed at VND 13,100/kg ($570/t) and VND 12,800/kg ($557/t), respectively, up against prices seen on 28 Feb'22. Mills prefer domestic scrap amid improved demand due to increasing seasonal consumption.

Vietnam's billets export offers up: Vietnam's BF-route billets export offers stood at $720/t FOB, an increase of around $5/t, w-o-w. Meanwhile, a deal for a position cargo was heard to be concluded from Hoa Phat at $760/t CFR LO for the Philippines.

South East Asian imported billets prices witnessed a further rise this week following a sharp uptick in Chinese rebar futures and the absence of Russian suppliers due to a series of sanctions on the country.

Overview of other SE Asian markets-

Thai buyers resume bookings: After maintaining silence for the last couple of days, buyers have gradually resumed fresh bookings for imported scrap.

• In a recent deal, around 1,500 t of Central America-origin HMS 1&2 (70:30) have been booked at $475/t CFR LCB basis.
  
  
• Fresh offers for HMS 1&2 (70:30) containers are offered at $490/t CFR Laem Chabang, witnessing a hike of $40/t on w-o-w basis.
  
  
• HMS (80:20) is offered at $500/t CFR levels, moving up significantly by $30/t w-o-w basis.
  
  

Indonesia's scrap imports trade yet to pick up: The continued uptrend in scrap import prices has compelled buyers to adopt a wait and watch mode. Recent offers:

• PNS: $550/t CFR Jakarta
  
  
• HMS 1&2 (80:20): $510/t CFR Jakarta
  
  
• Shredded 211: $530/t CFR Jakarta