Vietnam: Imported scrap offers decline sharply as trades slow down

Imported scrap trades to Vietnam continued mainly in containers, whereas demand from domestic and overseas finished steel buyers remained modest. Meanwhile, scrap buyers and steel mills are showing interest in domestic material due to attractive prices.

The financial situation has not been good towards the end of the third quarter. Interest rates from banks are likely to increase further in the next quarter, which impacted the economy and the government-funded projects. Meanwhile, taking credit banks has also become difficult, SteelMint learnt from sources.

• Indicative offers for bulk Japanese H2 heard at $390-395/t CFR levels, down $15/t w-o-w. Limited deals were heard concluded.
  
  
• Offers for bulk US-origin HMS 1&2 (80:20) scrap were at $370-375/t CFR Vietnam, down $40-50/t CFR w-o-w.
  
  

Domestic scrap prices find favour: Domestic scrap prices remain supportive for mid-size mills. H1 grade scrap prices are at VND 9,700- 9,900/kg, while H2 scrap prices stood at VND 9,400-9,500/kg. However, finished steel demand remained less supportive.

Vietnam's billet export offers rangebound: Vietnam's BF-grade billet export offers stood at around $540-550/t FOB, remaining rangebound w-o-w. However, no active deals were reported so far at current offers. Billet exports slowed down due to the Philippines struggling with natural calamities.

Overview of other SE Asian scrap markets

• Indonesia: Imported scrap offers for Australia-origin HMS 1/PNS were at $415-420/t, CFR Jakarta. Meanwhile, Singapore-origin PNS was at $437 CFR Jakarta.
  
  
• Malaysia: Australia-origin shredded stood at $382/t CFR, while HMS 1&2 (80:20) from the same origin was at $360/t CFR, down $10/t from last week.
  
  
• Taiwan: Taiwan's imported scrap prices for Australia-origin HMS 1&2 (80:20) stood at $345-350/t CFR Taichung. Shredded 211 offers from Australia and New Zealand were at $405/t CFR Taichung.