SE Asia: Imported Scrap Offers Up, Trades Limited

Imported scrap offers to Vietnam continue uptrend - SteelMint learned from market participants that imported scrap offers to Vietnam have increased following recovery in global scrap prices, however, very limited trades were concluded as most scrap suppliers based in Europe and US remain in 'Wait and Watch' mode for more clarity on the global market. Vietnamese steelmakers remain cautious about the sharp jump in global scrap offers but on the other side still weak Japanese domestic scrap prices.

According to sources, last week few trades were reported, Hong Kong origin HMS 1&2 (50:50) in bulk volume sold at around USD 312-313/MT, CFR Vietnam to Northern port. US origin leading scrap supplier sold P&S scrap in 40 Ft container at around USD 319-320/MT, CFR Vietnam.

"Presently very limited offers of imported scrap are available in the market, however, with softening of customs issues and strict port regulations, few importers have shown indications of returning to the containerized trades along with regular bulk buying and few trades in containers heard to have concluded recently in the Southern region" a source shared.

Notably, after Vietnam's customs department classified containerized scrap as a waste product in August 2018, the country had observed a sharp fall in spot buying of containerized scrap, which prevented it from entering the country. However, as per the recent updates, it is being expected that buying to have resumed and to gain momentum in the near future as customs authorities have reclassified containerized scrap as a raw material for steel production.

Availability of Japanese scrap offers remain limited - Japanese scrap offers in bulk were limited as the domestic market remained weak. As per reports of Japan Metal Daily, domestic scrap prices have lowered further around JPY 500/MT by leading steelmakers like Chubu steel, Aichi Steel and Tokyo Toyohashi factory in Japan. Tokyo steel holds H2 price at JPY 29,000/MT at Utsunomiya plant which is almost 2 years low while H2 export offers were hovering in the range of JPY 29,000-30,000/MT (USD 265-274), FoB Japan.

Indonesian imported scrap prices marginally up - Shredded scrap from US was being offered at around USD 317-320/MT, CFR Jakarta in 20 Ft containers, up USD 5-7/MT against last week while UK origin P&S scrap in 20 Ft containers heard at around USD 342-345/MT, CFR Jakarta.