Vietnam: Imported bulk scrap offers drop w-o-w amid low demand for deep-sea cargoes
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- Vietnam mill wins Kanto tender, but spot liquidity low
- Project delays, low govt investment hit steel demand
CFR assessments
- Weekly assessment for deep-sea bulk US cargoes of HMS (80:20) stood at $363/tonne (t), down $1/t w-o-w.
- Weekly assessment for Japanese-origin H2, a major tradable grade in Vietnam's scrap market, was at $336/t, down by $3/t w-o-w.
Vietnam's demand for deep-sea scrap was subdued, with market participants shifting their attention to competitively priced alternatives and EAF mills operating at only 65-70% capacity.
"There is less competition for scrap lately, as some regional markets have scaled back on purchases. This has opened up options for cheaper, high-quality alternatives, making deep-sea cargoes less appealing," explained a Vietnam-based trader.
H2 offers to Vietnam were heard at $335-340/t CFR towards the middle of last week, while bids hovered around $330/t CFR, reflecting weaker demand.
"This would usually be a busy period for procurement, as the rainy season winds down, but many mills are holding back, waiting for clearer price trends to emerge," said a source from a Vietnam-based mill.
Indicative offers for deep-sea cargoes from the US to Vietnam were at $364-368/t CFR, with sellers' tradable levels for low-grade mixed scrap at $360/t CFR, while bids remained lower at $355/t CFR.
"Deep-sea cargoes feel too expensive and risky due to the large commitments they require," shared a trader.
The persistent bid-offer gap and weak demand kept deep-sea offers limited, as mills showed little interest in securing large volumes.
Demand for HS scrap was sluggish, weighed down by slow processing, limited government investment, and high inventory levels. Offers were heard at $360-365/t CFR, but bids stayed below $350-354/t.
"We halted negotiations last week due to limited vessel availability for January, compounded by public holidays in early January in Japan and late January in Vietnam," said a Vietnam-based trader.
Outlook
Japan's H2 offers are likely to stay firm due to tight supply, though subdued demand from Vietnam and ongoing freight challenges may limit further price increases. Meanwhile, Vietnamese mills are holding off on bigger purchases, awaiting clearer price direction in the coming days.
