Vietnam: Imported scrap demand remains dull amid falling steel prices

Vietnamese imported ferrous scrap prices continue with the downtrend for yet another week, after the three-month straight hike at the beginning of the year. The South East Asian market followed the global trend, and buyers remained absent from the imported scrap market.

Demand for finished steel from overseas and regional markets remained dull due to slow business activities mainly in the construction sector. Market insiders believe if the current situation continues, then they have to cut production for June 2022.

Fresh offers for Japanese H2 bulk scrap dropped further to $500/t CFR, by $10/t w-o-w. Buyers are still holding back as prices are still beyond their affordability. Sellers are under pressure to drop offers amid weak demand and more reasonable scrap offers from other origins.

Bulk offers for HMS 1&2 (80:20) from the US were at $505/t CFR, down $5-10/t w-o-w. However, the bids remained on the lower side for HMS (80:20) bulk at $490/t CFR Vietnam.

Vietnam's billet export offers drop: Vietnam's BF-route billet export offers stood at around $670/t FOB, a sharp w-o-w drop of $25/t. Prices fell further to around $640/t FOB towards weekend. Sluggish demand, falling prices of raw materials and domestic scrap continue to weigh down offers.

Other SE Asia scrap market overview:

• Thailand: Central America-origin HMS 1&2 (70:30) was offered at $415-420/t CFR. Offers have come down by $25-30/t w-o-w on limited demand and low bids from end-users have kept trade limited.
  
  
• Indonesia: The most preferred shredded material of UK origin was being offered at $505/t CFR levels, while Bundles were quoted at $490/t CFR levels.