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Vietnam: Imported ferrous scrap offers diverge even as domestic prices fluctuate

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Melting Scrap

BigMint Bureau

234 Reads

10 Jun 2024, 19:53 IST

Vietnam: Imported ferrous scrap offers diverge even as domestic prices fluctuate

In Vietnam, imported bulk ferrous scrap offers from the US and Japan witnessed mixed trends amid passive buying interest as the domestic scrap market witnessed a continued decline in prices driven by subdued demand and recent adjustments in finished pricing.

For H2 grade scrap, firm offers continued to decrease, reaching $370/t CFR Vietnam, down from previous levels of around $372-375/t. Despite sellers maintaining tradable and indicative offers at $365/t CFR Vietnam, market activity remained limited.

Only one Vietnam-based mill made a bid at $370/t CFR for H2, with specific quality requirements.

Meanwhile, BigMint's assessments indicate stability in ferrous scrap prices in Vietnam.

US bulk HMS (80:20) was assessed at approximately $384/t CFR Vietnam, showing a marginal increase of $1/t w-o-w. On the other hand, Japanese H2 scrap prices experienced a slight decline, with BigMint's assessment ranging between $369-370/t CFR Vietnam, down $3/t w-o-w.

Buyer enquiries remained subdued below $362/t, while workable levels were at around $365/t CFR.

Domestic market: Prices for Type 1 or H2-equivalent 3-6 mm scrap dropped significantly in both northern and southern regions. In northern Vietnam, prices fell by VND 100/kg ($4/t) to a range of VND 9,400-9,500/kg ($368-$372/t), while in southern Vietnam, prices for the same grade also decreased to VND 8,250-8,550/kg.

This decline follows a period of rapid price increases observed earlier in May, leading to a market recalibration reflecting weaker demand, especially with the approach of the rainy season. Electric arc furnaces (EAFs) are facing challenges in competing with blast furnaces due to lower costs of iron and coke.

Outlook: Overall, the Vietnamese scrap market continues to remain volatile with fluctuations seen. Instability in ferrous scrap prices suggests a cautious market sentiment with buyers and sellers closely monitoring market developments and adjusting their future bookings accordingly.