Vietnam: Imported bulk scrap offers from Japan rise by $10/t w-o-w, weak buyer interest persists

• Vietnam's imported scrap prices up by $10/t; cautious sentiment post-Golden Week.
  
  
• Mills shows interest in restocking amid stable domestic prices.
  
  

In Vietnam, imported ferrous scrap prices from Japan continued to increase by around $10/tonne (t), while US scrap offers have also gone up.

Despite this, overall sentiment was weak following China's Golden Week, and expectations of a market rebound were unmet due to the lack of concrete stimulus policies. H2 offers to Vietnam jumped to $350/t CFR, an increase of $10-15/t from the previous week.

Japanese suppliers remained cautious, closely monitoring the situation. Meanwhile, Japan's H2 collection prices rose to JPY 38,300/t from the previous week's levels. Vietnam emerged as the winning bidder for the October Japanese scrap export tender, even as prices remained elevated.

What stands out is Vietnam's increased interest in Japanese scrap imports, alongside Bangladesh, which has been a major buyer.

Approximately 15,000 t of scrap were likely to be booked by a Vietnam-based mill at JPY 45,680/t ($308/t) FAS, reflecting a rise of JPY 2,960/t ($20/t) from September's price of JPY 42,720/t ($288/t).

Assessments

• Weekly assessment for deep-sea bulk US cargoes of HMS (80:20) CFR Vietnam stood at $368/t, up by $3/t w-o-w.
  
  
• Weekly assessment for Japanese-origin H2, a major tradable grade in Vietnam's scrap market, was at $345/t CFR up by $10/t w-o-w.
  
  

Buyers also showed limited bidding interest amid rising offers. Major prices include shredded at $370-375/t (Japan-origin), HMS 80:20 at $365-372/t (US/Australian-origin), and HS at $380-382/t (Japan-origin) with shredded and HMS (80:20) offers varying within $5-10/t as compared to the last week.

Vietnam's domestic scrap prices of H2-equivalent 3-6 mm material remained last week with northern prices ranging between VND 9,100-9,700/kg ($367-391/t) and southern prices at VND 8,500/kg ($342/t). Following China's Golden Week holidays, Vietnamese mills showed a heightened interest in restocking scrap, while rebar and billet prices remained stable across regions.

Additionally, a mill raised D10 steel bar prices by VND 100-200/kg ($4-8/t) starting of last week.

Formosa Ha Tinh (FHS), Vietnam's steel major, has increased HRC prices by around $35/t CIF m-o-m for December, 2024 sales. Currently, prices of HRCs (SAE1006, skin-pass) stand at $545-555/t CIF Ho Chi Minh City (HCMC) compared to $511-520/t CIF HCMC. Prices rose amid increased offers from domestic competitors and a hike in imported HRC offers from China.

Outlook

Market experts anticipate a price increase driven by rising demand from major mills. This uptick in demand, coupled with early indications of restocking efforts, is likely to sustain the uptrend in prices in the near term. As mills prepare for increased activity, the market remains optimistic about continued price support.