Vietnam: Imported scrap offers fall to 4-month low, amid subdued finish steel demand

Vietnam's imported scrap offers fell to their four-month lows. However, buyers and steelmakers are yet to get workable price levels. High finished steel inventories, however, pushed buyers to the sidelines. Most of the mills have either cut down or suspended their rebar production for the time being. Participants are keenly watching market movement as demand is low.

Offers for Japanese bulk H2 have come down to $480/t CFR levels. Yet, no fresh deal was concluded for Japanese material, despite offers having come down to four-month lows. Additionally, Vietnamese buyers believe that Japan's recent domestic scrap price cuts are likely to further pull down export offers.

On the other hand, Vietnam's steel mills booked US-origin bulk scrap cargo last week. Around 15,000 t of HMS 1&2 (80:20) have been booked at $475/t CFR levels. Offers have come down by $30/t against the prices recorded on 23 May.

Demand from domestic and overseas markets have slowed down, leading to limited inquiries for imported scrap due to high rebar prices. Government projects have slowed down and are likely to start from June.

However, mills have lowered their domestic rebar prices by VND 200/kg ($10/t) w-o-w to VND 17,000/kg ($739/t). Rebar prices are likely to decrease further as mills have high inventory, SteelMint learnt.

Vietnam's billet export offers range-bound: Vietnam's blast furnace (BF) billet export offers remained range-bound at around $630-640/t FOB w-o-w. Sluggish demand for finished steel, falling prices of raw materials and domestic scrap continued to weigh on offers.

Other SE Asia scrap markets overview

• • Thailand: Central America-origin HMS 1&2 (70:30) was offered at $400/t CFR. Offers have come down further by $15-20/t w-o-w.
    
    
  • Indonesia: Imported offers for US-origin PNS was at $513/t CFR Jakarta, while Australia-origin HMS 1&2 (90:10) was booked at $485/t CFR Jakarta. But deals remained few due to low demand.