Vietnam: Imported ferrous scrap prices stable w-o-w, finished steel sees weak monsoon sales
...
Vietnam's imported ferrous scrap market witnessed a largely stable trend with minor fluctuations in offers and indicatives. For instance, H2 grade scrap was offered at $365-$370/t CFR Vietnam, while bids are still hovering at $358-360/t levels. On the other hand, H1/H2 (50:50) grade inquiries were at $358-362/t CFR Taiwan.
The domestic ferrous scrap market in Vietnam has shown a stable trend, although deep-sea origin steel scrap imports remain slow due to fewer inquiries for H2.
Vietnamese mills remained cautious, with no bids for Japanese cargoes. A Vietnamese trader noted poor sales in both flat and long steel markets due to the ongoing monsoon impact across regions.
US scrap remained more competitive because of the recent price drops due to currency fluctuations. Buyers anticipated discounts amid slow demand for Japanese material, while importers avoided new Japanese bookings after recent purchases.
The deep-sea bulk market stayed quiet, but offer levels rose, with HMS (80:20) at $386-388/t CFR Vietnam, and Japanese bulk H1/H2 scrap remaining stable at around $360/t CFR.
Assessment trend:
- Weekly assessment for deep-sea bulk US cargoes of HMS (80:20), CFR Vietnam, narrowed downward to $377/t, a decrease of $1/t from previous weeks.
- Weekly assessment for Japanese-origin H2, a major tradable grade in Vietnam's scrap market, declined by $1/t to $362/t CFR Vietnam; with workable levels still at $356-358/t levels.
Hoa Phat Group, Vietnam's second-largest steelmaker, reduced its HRC domestic prices on 1 July due to weak demand and extended EU safeguard measures. Prices of non-skin pass SAE1006/SS400 grade for August/September shipment dropped by VND 320/kg ($13/t) to VND 14,070-14,100/kg ($551-552/t) CFR compared to 3 June. The decline was influenced by the off-season for steel demand, redirection of volumes from the EU market, and competition from lower-priced Chinese imports. Despite a slight rise in Chinese HRC futures, Vietnamese demand remains low.
Outlook
Vietnam's deep-sea scrap import market is expected to decline as mills may reduce interest in fresh scrap bookings during the monsoon season. Near-term domestic scrap consumption and finished steel sales are also expected to remain weak.
