SE Asia: Imported scrap offers surge post-Kanto tender

South East Asia's imported scrap market saw a sharp hike in offers brought on by the recent Kanto tender. Vietnam's imported scrap offers increased further, following the surge in Japan's Kanto scrap export tender. A total of 10,000 tonnes (t) of scrap were awarded to two Vietnamese scrap buyers and the average price for H2 scrap stood at around JPY 55,845/t ($483/t) FAS, moving up significantly by JPY 4,862 ($42/t) m-o-m, SteelMint learnt from sources. The cargoes have been booked in two slots of 5,000 t at JPY 55,850/t ($483/t) and 5,000 t at JPY 55,846/t ($483/t) on free alongside ship (FAS) basis.

SteelMint's price indications for bulk Japanese H2 stand at $545-550/t CFR levels, registering a sharp hike of $30-35/t w-o-w. Some Vietnamese stayed away from the high prices of Japanese cargoes.

The rise in billet prices and better finished steel demand outlook have supported higher imported scrap prices. Vietnam's BF-route billets export offers stood at $690/t, FOB, a sharp rise of around $50/t when compared to offers towards end-Jan'22. Prices rose sharply after markets reopened post-Tet holidays.

Overview of other SE Asian markets:

• Thailand's imported scrap offers up further: Central America-origin HMS 1&2 (70:30) offers in containers moved up further by $10/t w-o-w to $450-460/t CFR Laem Chabang. Scrap buyers placed bids for HMS 80:20 at $460/t CFR levels. Offers for shredded from the same origin were at $525-530/t, CFR.
  
  
• Indonesia scrap buyer resume trade: Indonesian scrap buyers have resumed trade, with the recently concluded deal being heard for Hong Kong-origin containerized PNS booked at $535/t CFR Jakarta basis.