Vietnam: Imported scrap offers up $15/t w-o-w despite drop-in steel prices

Imported scrap prices into Vietnam rose by $15/t compared to the levels seen at the beginning of last week, even as steel prices declined. The steelmakers are actively tracking other prospective scrap sourcing markets for fresh cargo bookings for Aug'21 shipments at workable prices. The nearest and most preferred is Japanese scrap which is, however, now available at elevated offers. However, Vietnamese steelmakers and buyers are not willing to pay these prices. Hence, the discrepancy in bids and offers resulted in limited trade.

• Fresh bulk Japanese scrap export offers for H2 grade are now being quoted at $510/t CFR, up by $15/t against last week.
  
  
• In contrast, Vietnam booked a US-origin bulk cargo of shredded at around $530/t CFR . However, the deal could not be confirmed till the time of publishing this report.
  
  

Vietnam's domestic market update

• Domestic scrap purchase prices up $30/t w-o-w: Scrap prices in Vietnam moved up further by VND 700/kg ($30/t) on 21 Jun'21 compared to the level reported on 14 Jun'21, sources informed SteelMint. Latest purchase prices for H1 scrap are at VND 10,700/kg ($460/t) and VND 10,400/kg ($450/t) for H2 grade scrap. Due to scarcity in local scrap market, prices are high. Mills are preferring domestic scrap, owing to the hike in imported scrap offers, SteelMint understands.
  
  
• Vietnam billet export offers stable w-o-w: According to SteelMint sources, BF-route billet offers are at $670/t FoB, while IF-route offers are at around $660/t FoB, stable against last week.
  
  
• Domestic steel prices drop: Domestic deformed bar and wire rod prices fell on 21 Jun'21 by VND 200/kg and VND 600/kg, respectively.
  
  
• South Vietnam plans transport infrastructure upgrade: The Ho Chi Minh City (South Vietnam) People's Committee unveiled a plan to implement the city's transport infrastructure upgrade project in the 2021-2030 period, which will require an investment of VND 970.6 trillion ($42.3 billion). The project will cover over 650 km of roads, 211 km of railroads, 81 large bridges, 15 major intersections, and seven projects under the Smart Cities program.
  
  

Indonesian scrap trade improves on active buying: Scrap demand from Indonesian mills remained high this week after being stable for the last few weeks. Buying activities improved and prices are also on the higher side.

Following the global price trends, imported scrap prices to Indonesia have crossed over $520/t CFR Jakarta for the most preferred Hong Kong-origin PNS grade, up by $15-20/t w-o-w. Blue steel from Australia was sold at $525/t CFR Jakarta. No firm offers have been heard for HMS (80:20) and busheling grade scrap this week on tighter availability.

Thailand's imported scrap market quiet: Central American-origin HMS 1&2 (80:20) is being offered at $410-420/t CFR levels, a decrease of $10-20/t since the last two weeks. However, no recent deals were heard to have been concluded last week, SteelMint learned from market sources. Also, no bulk deals were reported recently. Indicative imported billet offers into the country remained stable at $700/t CFR. The offers are mainly heard from the ASEAN side, as per a SteelMint source. However, the bids are at $680-685/t CFR.

Imported scrap offers to Taiwan follow global trend: Taiwan also witnessed the same trend this week, with offers price up. However, steel consumption always slows down in summer and the mills still can secure some quantity from the domestic yards. So, buyers are not in a rush to increase the bids to match the offers. As a result, a modest number of deals were struck.

Fresh indicative offers:
o HMS 1&2 (80:20): $440-445/t CFR Taichung
o Shredded 211: $460/t CFR Taichung