SE Asia: Imported scrap trades improve; prices fall

Imported ferrous scrap trades in Vietnam and Indonesia picked up last week after a decline in offers. However, market sentiments in Thailand remained dull and the country observed limited trades due to bid-offer disparity.

Vietnam mill booked bulk cargo from the UK: Imported bulk scrap cargoes have increased over a week. The cargo comprises a mix of HMS & PNS with HMS being booked at $318/t and PNS at around $328/t CFR basis. The booking was made earlier last week, however, the quantity could not be confirmed till the time of publishing this report.

• SteelMint's assessment for Japanese bulk H2 stands at $305-310/t, CFR Vietnam level, down by around $8/t against last week's report.
  
  
• Suppliers have quoted around $305-310/t for Japanese H2, while buyers' bid price stands at $300/t level.
  
  
• Japanese market is less active at the moment due to ongoing holidays (21st-22nd Sep'20) on the occasion of Autumn Equinox.
  
  
• SteelMint's assessment for bulk offers of HMS (80:20) from USA stands at $318/t, CFR, down by $2 w-o-w.
  
  

Indonesian buyers hesitant to buy scrap on worries of the new regulation: Indonesian buyers remained hesitant to buy scrap this week due to the new regulation which is likely to come into effect from 1st Oct'20, SteelMint learned. The Indonesian government wants to understand better the origin of these materials hence the new registration process applies to exporters in any country.

• P&S offers in 20 ft containers remained firm at $320/t CFR Jakarta, while in 40ft containerised PNS is being offered at $315/t CFR Jakarta.
  
  
• Busheling scrap offers in 20 ft containers are at $330/t CFR Jakarta.
  
  
• Other higher grade scrap Shredded 211 is being sold at $308/t CFR Jakarta basis.
  
  

Thailand trades remain limited due to bid-offer disparity: Cheaper steel imports and the pandemic's impact, which delayed construction projects and worsened the situation, slowed down the steel consumption in Thailand.

Thai steel manufacturer Millcon Steel is requesting to the government to use local steel in 10 infrastructure projects under public private partnership (PPP) to boost the industry and protect the domestic market against cheaper steel imports from China and Vietnam, as per reports.

• Offers from South America for HMS scrap in containers stand at $280/t CFR Thailand.
  
  
• Australian origin HMS 1&2 (80:20) is being offered at $295/t CFR level.