Vietnam: Imported bulk ferrous scrap prices fall up to $2/t w-o-w

• Domestic scrap prices remain stable w-o-w
  
  
• Buyers cautious, show lesser activity in deep-sea market
  
  

Vietnam's imported bulk ferrous scrap prices continued to decline by up to $2/t w-o-w, although domestic scrap prices were unchanged and continued to remain lower than seaborne levels. Similarly, demand in the downstream market continues to remain mixed.

Offers for Japanese H2 grade scrap decreased to $355-360/t CFR Vietnam from $362-365/t CFR the previous week; while buyers in Vietnam prefer local scrap priced around $340/t. Overall, buyers are cautious and less active in the market.

Offers for Australian HMS (80:20) bulk material fell $5-7/t w-o-w to $372-375/t CFR Vietnam, while US-origin material was offered at $374-378/t CFR. US sellers have more options, leading to higher prices compared to Australian material, according to a buyer source.

As per a buyer source, bids came in at just $345-355/t CFR Vietnam the past week, or about JPY 44,500-45,500/t FOB Japan after accounting for freight.

As per BigMint's weekly assessment, H2 export price, FOB Japan was JPY 44,500-45,000/t on Friday, sliding JPY 2,000/t lower w-o-w from JPY 46,500-47,000/t.

Heavy scrap (HS) and Shindachi offers also dipped w-o-w with suppliers quoting roughly $395-400/t CFR Vietnam while others were offering JPY 51,000-52,000/t FOB Japan for the material but no deals were heard concluded.

Bids were about $5-8/t lower w-o-w at the higher end from Vietnam. Shredded scrap prices saw a similar decline.

Assessments

• Weekly assessment for deep-sea bulk US cargoes of HMS (80:20) CFR Vietnam stood at $371/t, down by $1/t w-o-w.
  
  
• Weekly assessment for Japanese-origin H2, a major tradable grade in Vietnam's scrap market, down by $2/t to $360/t CFR.
  
  

Stable domestic scrap prices

Domestic scrap prices in Vietnam remained unchanged. In the northern region, Type 1 (3-6mm) scrap is priced at VND 9,500/kg delivered to the mill, excluding VAT. In the southern region, Type 1 (3-6mm) scrap ranges from VND 8,500-8,950/kg delivered to the mill, excluding VAT.

The stability in domestic scrap prices contrasts with seaborne levels. The downstream market shows mixed conditions; rebar construction demand is recovering, while the flat steel market remains weak due to the lack of protective tariffs.

Outlook: Market participants suggest that a surge in demand may not be imminent in the near term. However, a recovery in rebar demand could provide steelmakers with an opportunity to purchase scrap again, depending on favourable price trends from the US and Japan.