Vietnam: Imported scrap offers inch down, trade subdued

The South East Asia's imported scrap market remained dull amidst increased Covid cases in major countries and discrepancies in bids and offers. On the other hand, limited offers were reported due to lesser activities observed in the South East Asian markets.

Imported bulk scrap offers to Vietnam have come down slightly on less demand owing to the current market scenario.

Fresh offers for bulk Japanese H2 were reported at $465-470/tonne (t) CFR levels, declining slightly by $10/t w-o-w. SteelMint's assessment for Japanese bulk H2 remained firm at around $465/t CFR Vietnam, down by $5/t w-o-w. However, inquiries are still not at par with the quoted offers.

No firm offers were reported for US-origin HMS 1&2 (80:20). Indications for the US HMS 1&2 (80:20) are around $500/t CFR Vietnam levels.

"Don't think any deals were done to Vietnam. May be, Korea or Thailand bought some cargoes from the US west coast. There are no details but we heard some new sales were done," a US-based scrap trader said.

Vietnam's billet export offers stable: Vietnam's mills kept their billet export offers unchanged last week. BF-route billet export offers were heard at around $630/t FoB Vietnam. As per sources, no deals were heard to be concluded in the week due to the prevailing holidays.

Market highlights of other SE Asian countries

• Indonesia scrap offers firm: Imported scrap offers to Indonesia largely remained firm last week. However, deals remained subdued. Offers for the PNS grade scrap were at $500/t CFR, and HMS 1&2 (80:20) at $450/t CFR Jakarta.
  
  
• Indonesia's monthly ferrous scrap imports jump 29% in Jul'21: Indonesia, an emerging major consumer of ferrous scrap, witnessed scrap imports increasing by 29%, m-o-m, in Jul'21. The country imported 180,000 t of scrap in July against 0.14 mn t in June, as per SteelMint data. Australia was the largest supplier with 50,000 t followed by Hong Kong and the US with 40,000 t each. On a yearly basis, scrap import volumes surged by 125% from 80,000 t in Jul'20.
  
  
• Thailand's imported scrap offers remain stable: Imported scrap offers into Thailand have so far remained unchanged. Bookings remained lull, despite stable offers. Central America-origin HMS 1&2 (80:20) remained unchanged at $420-422/t CFR levels w-o-w.