Vietnam: Imported bulk scrap offers soften w-o-w amid moderate demand

• H2 scrap offers fall amid weakening JPY
  
  
• Moderate demand seen for imported scrap
  
  
• Rising finished steel prices may support mill scrap purchase
  
  

Imported ferrous scrap prices from Japan fell slightly by around $2/tonne (t) in the Vietnamese market, while US scrap offers have also inched down by $2-3/t.

As per market sources, H2 scrap offers to Vietnam were reported at $340-345/t CFR, down $5/t w-o-w, with indicative bids around $330-335/t CFR. While demand remains moderate, further price increases could push Vietnamese mills to consider alternative materials if levels exceed $350/t CFR.

A trader informed: "Trade activity has been muted due to bid-offer gap, though rising finished steel prices in Vietnam may indicate increasing scrap demand from mills.

US-origin deep-sea bulk HMS (80:20) cargo offers were at $375/t CFR, matching last week's levels, while bids were heard at $365/t CFR. Australian-origin offers were at $370-374/t CFR, with bids at $363-365/t CFR.

H2 scrap prices have begun to rise slightly towards last mid-week but due to a weaker JPY, it witnessed a fall with the currency trading near a two-month low of JPY 149.4, down from JPY 143.8 a week earlier.

H2 scrap offers decreased to JPY 44,000-45,000/t ($294-301/t) but rebounded towards weekend to approximately JPY 46,000/t. Bids from Vietnam were reported at around $330-335/t CFR (JPY 43,900-44,700/t) FOB Japan, after accounting for freight costs of about $30-35/t.

Assessments

• Weekly assessment for deep-sea bulk US cargoes of HMS (80:20) CFR Vietnam stood at $366/t, down by $2/t w-o-w.
  
  
• Weekly assessment for Japanese-origin H2, a major tradable grade in Vietnam's scrap market, was at $344/t CFR down by $1/t w-o-w.
  
  

Prices for higher-grade scrap also dipped slightly during the week.

A Vietnamese trader reported that offers for heavy scrap (HS) and Shindachi were around $370/t CFR Vietnam, translating to approximately JPY 50,000/t FOB Japan. Other suppliers quoted prices ranging from JPY 48,500 to JPY 49,500/t by last weekend.

However, bids from Vietnam experienced a pullback, settling between $350 and 355/t, which equates to approximately JPY 47,000 to 47,500/t FOB Japan, according to a Japanese trader.

Local steel mills raised offers at the start of the week, increasing prices by $5-8/t for both rebar and wire rods.