Vietnam: Imported scrap market awaits Kanto tender outcome for price outlook

South East Asia's imported scrap market remained quiet for yet another week with no major deals heard this week. Meanwhile, imported scrap prices were mostly unchanged, as Japanese suppliers kept away from the market to enjoy the New Year holidays.

• Offers for bulk Japanese H2 were at $475-480/tonne (t) CFR Vietnam, down by $2/t w-o-w.
  
  
• US-origin bulk HMS price indications were assessed at around $495-500/t CFR Vietnam levels, unchanged w-o-w.
  
  

"Currently, steel mills don't have billet export bookings yet they need to restock scrap to fulfill their domestic requirement," said a Japanese scrap trader.

The country's BF-route billets export offers stood flat at $620/t, FOB for the third straight week with no deals concluded this week.

SE Asian market overview

Other South East Asian scrap buyers like Thailand and Indonesia gradually resumed trading activities after the New Year holidays.

• Indonesia: Fresh offers for PNS are assessed at around $505/t CFR Indonesia, while its consumption has reduced. Indonesia's ferrous scrap imports were recorded at 160,000 tonnes (t) in Nov'21, up 33% m-o-m from 120,000 t in October. The UK was the largest supplier with 40,527 t, followed by Australia and Hong Kong with 32,063 t and 28,980 t, respectively. On a yearly basis, too, import volumes rose by 33% compared to 120,000 t in Nov'20.
  
  
• Thailand: Central America-origin HMS 1&2 (80:20) is currently offered at $410/t CFR levels.
  
  

Outlook: Market players are waiting for the results of Japan's Kanto Tetsugen ferrous scrap export tender, scheduled for 12 Jan'22, trade sources informed SteelMint. Notably, the tender had remained inconclusive for the two months in a row on bid-offer disparities.