Vietnam: Imported bulk ferrous scrap prices decline up to $4/t w-o-w amid cautious outlook
...
Vietnam's imported bulk ferrous scrap prices continued to decline up to $4/t w-o-w amid mixed conditions in downstream markets. Vietnamese domestic scrap prices were unchanged, as they were already lower than seaborne levels.
As per a Vietnamese buyer, offers for Japanese H2 grade were reported at $365-370/t CFR Vietnam and less accepted as domestic prices are lower than seaborne levels. The long steel market in Vietnam has seen a slight recovery in rebar demand, while the flat steel market remains weak due to the absence of protective tariffs.
Assessments
- Weekly assessment for deep-sea bulk US cargoes of HMS (80:20) CFR Vietnam stood at $372/t, down by $3/t w-o-w.
- Weekly assessment for Japanese-origin H2, a major tradable grade in Vietnam's scrap market, down by $4/t to $362/t CFR.
Domestic market: Type 1 or H2-equivalent 3-6 mm scrap prices in northern Vietnam held steady at Dong 9,600/kg ($385/t). In the southern region, prices remained stable at Dong 8,500-8,600/kg, as per market sources. Domestic scrap prices were unchanged, as they were already lower than seaborne levels. Downstream markets are mixed, with a noted recovery in rebar construction demand, while the flat steel market remains weak due to the absence of protective tariffs.
Outlook: Most market participants are pessimistic about the short-term outlook, with shippers hesitant to make offers due to potential losses. This cautious stance reflects the current uncertainties and challenges, exacerbated by recent volatility in the seaborne steel and scrap markets.