Vietnam: Imported scrap offers rebound on limited offers; buyers passive

Due to shortage of material, imported scrap prices in Vietnam have remained high. However, buyers are still passive due to the ongoing New Year holidays. Prices for overseas material gained momentum by around $10-15/t, while those for local scrap inched up owing to tight supplies.

The market was mostly quiet last week as trade channels were not active. Local mills focused on domestic scrap purchases at more competitive prices. However, only a few negligible deals were concluded, although confirmation is awaited from either end-users or traders.

Assessments for US-origin bulk offers are now at $410-415/t CFR, up by $10-15/t w-o-w.

However, a few buyers are yet to resume bulk bookings due to disparities in bids and offers.

SteelMint's assessment for Japanese H2 material is at $400-410/t CFR, up by $10/t w-o-w.

Vietnam's billets export offers up w-o-w: Vietnam's BF-grade billet export offers increased by $10/t w-o-w followed by a hike in the country's scrap prices. Offers were at $560/t FOB. However, no active deals were reported this week.

Due to the upcoming Tet holidays, the imported scrap market is likely to remain inactive for a short period in January. Meanwhile, the domestic market had not shown any clear signs of recovery, and the real estate market faced many challenges. That would have a great influence on the consumption of steel.

Trades in other South East Asian markets like Thailand, Taiwan and Malaysia are yet to resume after the holidays. However, the market is likely to remain slow ahead of the Chinese new year holidays.

Outlook: The government will fast-track investments in infrastructure projects to ensure economic growth that could support domestic steel demand, especially for construction steel, in 2023, SteelMint learnt from sources.