SE Asia: Imported Scrap Offers from US Increase

Trading activities for imported scrap to South East Asian markets witnessed an improvement as compared to last few weeks, while offers for imported Scrap to showed mixed trend, with prices of cargo from Japanese origin moving down, while most global origins showing slight upward movement.

Vietnam - On account of rising global scrap prices, offers to Vietnam from USA also have witnessed an upward trend this week. Bulk HMS 1&2 (80:20) from USA is now being offered at USD 258/MT CFR Vietnam, up by USD 5 W-o-W. Offers US origin P&S (in 40ft containers) have now increased to USD 270-275/MT.

Trades for H2 scrap from Japan were observed at USD 240/MT CFR Vietnam last week, however, due to supply-demand gap, many suppliers have hiked offers of H2 scrap to USD 248-250/MT CFR this week. Demand for imported scrap has turned healthy in the last week.

Indonesia - Indonesia market for imported scrap remained stable in terms of offers as well as demand, with little variation in prices w-o-w. Many mills are still preferring to buy from close origins like Singapore, with bookings of P&S being reported from Singapore at USD 280/MT CFR Jakarta (up by USD 5 against last week). However currently bids are reported at USD 2/MT lower than current offer.

Notably, Busheling prices have remained range-bound as per origin. Some mills booked automobile Japanese Busheling from Toyota this week at USD 275/MT CFR, pulling down the Busheling prices from other origins too. Currently, Mexico or Poland origin busheling is being traded at USD 278/MT, while higher quality material from UK is still being offered at around USD 283-285/MT CFR.

Limited offers for PNS or bluesteel were reported this week at around USD 278/MT CFR. Bids for bluesteel stood at USD 275-278/MT from UK, USD 272/MT from Poland. The market expects the prices to improve if the demand from buyers sustains.

Thailand - Few trades for Latin American HMS 1&2 (80:20) were reported at around USD 240-245/MT CFR Thailand.