Indonesian trade ministry extends deadline for imported scrap registration

South-East Asian scrap market witnessed mixed sentiments last week, as the deadlines for the imported scrap registration process have extended, as per newly revised regulation by the trade ministry of Indonesia. While, Vietnam and Thailand have witnessed stability in imported scrap prices.

Indonesia: After the announcement of extending the registration time to 1st Jan'21 for scrap suppliers, the market has turned active again, SteelMint has learnt from trade participants. Indonesian govt has revised its trade regulation no. 84/2019 third time towards the closing of last week, concerning the provisions on imports of Non-B3 waste as industrial raw materials are as below-

• Requirements for registered exporter's obligations for imports of non-B3 waste is now extended till 1st Jan'21.
  
  
• For inspection of non-B3 waste carried out before 1st Jan'21, shipments must arrive at the port of destination in Indonesia before 28th Feb'21 as evidenced by a valid PI (import license).
  
  

Imported scrap offers have remained largely stable on weekly basis.

• PNS in 20ft container is being offered at $315-318/t CFR Jakarta level.
  
  
• Other higher grade scrap like busheling in 20ft is currently being traded at $325- $330 CFR Jakarta, while shredded 211- is being offered at $310/t CFR Jakarta level.
  
  
• Blue Steel is being quoted at $325 -330/t CFR.
  
  

Indonesia witnessed a sharp rise by 63% in its ferrous scrap imports to 122,510 t in Aug'20 as compared to 75,010 t in Jul'20, as per customs data maintained with SteelMint. Australia remained the largest scrap supplier to Indonesia in Aug'20, as it exported 31,613 t in Aug'20 (up by 75% m-o-m).

Vietnam: Imported scrap offers to Vietnam remained mostly firm in the last couple of weeks, witnessing a drop in number of trades. Whereas, very few buyers actively participating in the market and were seen continuously bidding at a low level.

• A Vietnam based steel mill has been booked Japanese bulk cargo towards the closing of the week and the cargo entirely comprised of PNS grade scrap at around $325/t CFR Vietnam basis.
  
  
• Offers for Japanese bulk H2 stands at around $305-310/t CFR level, while bids were reported at $ 295-300/t basis.
  
  
• Hong Kong origin HMS 1&2 (50:50) in bulk is being offered at $298/t CFR level.
  
  
• SteelMint's assessment for Japanese bulk H2 stands steady at $295/t, CFR Vietnam level.
  
  

Vietnam's scrap imports fell significantly by 24% m-o-m to 0.47 mn t in Sep'20, as compared to 0.62 mn t of scrap imported a month ago in Aug'20. However, Japan remained the top scrap exporter to Vietnam, as it exported around 0.29 mn t in Sep'20.

Thailand- Imported scrap offers to Thailand slowed down since the beginning of the month, buyers currently set-back for the rainy season due to slow domestic finished steel market sentiments. However, limited trades have been reported during the last week.

• A decent quantity of American HMS was reported to have booked last week at $260/t CFR basis.
  
  
• Billet import offers in the country are noted to be at $440-445/t, CFR Thailand.