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SE Asia scrap: Upcoming Tet holidays keep trades low

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Melting Scrap

BigMint Bureau

661 Reads

8 Feb 2021, 19:11 IST

SE Asia scrap: Upcoming Tet holidays keep trades low

Japanese scrap offers have rebounded towards the closing of last week on demand-supply mismatch. Limited trades were reported throughout the week. Market activities in Vietnam remained relaxed due to Tet and Chinese New Year holidays. However, Thailand observed improvement in imported scrap trades.

Vietnam's imported scrap offers from Japan rebound- Vietnam based steel mills remained mostly quiet last week. Imported scrap prices to Vietnam remain mostly stable last week, hence, steelmakers have opted to continue to wait further for prices to come down. SteelMint assessment for Japanese H2 bulk offers stands at $385-390/t CFR Vietnam basis, up by $2/t w-o-w. Prices have rebounded after few scrap traders started limiting their shipment amount resulting in demand-supply mismatch.

USA origin HMS 1&2 (80:20) to Vietnam is being offered at $400/t CFR level, prices have significantly dropped by $20 w-o-w.

Indonesia's imported scrap market remains subdued- Market participants have observed that there was no bid for imported scrap last week hence Indonesia's scrap market activities remained quiet. Additionally, mills' scrap import permit would be expiring in March '21. Imported scrap prices to Indonesia was largely steady on a weekly basis.

Recent indicative offers (in 20 ft container)-

PNS: around $420/t CFR Jakarta
Busheling: $430-440/t CFR Jakarta

Indonesia's ferrous scrap imports were up by 17% m-o-m to 0.14 mn t in Dec'20 as against 0.12 mn t of scrap imported in Nov'20. UK continued to be the largest exporter, followed by Hong Kong and Australia.

Imported scrap trades in Thailand pick up- Last week a Thailand based steelmaker have booked around 5,000t of HMS from Central America origin HMS 1&2 (80:20) at $350/t CFR Thailand. Imported scrap prices to Thailand have dropped further by $10 against the preceding week. Notably, the prices have dropped around $100 in last one month.

Domestic steel consumption is estimated to grow 5-8% this year, supported by the government's infrastructure investment projects, according to the Federation of Thai Industries (FTI).