Vietnam: Imported scrap offers up following rise in Kanto tender bids

Vietnam's imported scrap offers moved up significantly following a sharp rise in the Kanto tender bids last week. A total of 10,100 tonnes (t) of scrap was awarded to two Vietnamese winners. The average price for H2 scrap stood at JPY 50,983/t ($442/t) FAS, SteelMint learnt from sources.

• Offers for bulk Japanese H2 were at $500-510/t CFR Vietnam, up by $20-25/t w-o-w. However, bids were comparatively low at $490-495/t levels. A deal was concluded for 5,000 t of Japanese H2 at $505/t CFR last week.
  
  
• US-origin bulk HMS price indications were assessed at around $500-510/t CFR Vietnam levels, up by $5/t w-o-w.
  
  

Vietnam's ferrous scrap imports were recorded at 540,000 t in Dec'21, up 35% m-o-m from 400,000 t in Nov. The US was the largest supplier with 160,000 t, followed by Japan and Australia with 140,000 t and 120,000 t, respectively. On a y-o-y basis, import volumes rose by 42% from 380,000 t in Dec'20.

Domestic scrap prices up on supply crunch: Vietnam's domestic scrap prices have increased on supply shortage due to lower collection during the pandemic. The procurement prices of H1 and H2 grades are at VND 12,400/kg ($539/t) and VND 12,100/kg ($526/t), respectively, up VND 600-1,000/kg ($26-43/t) compared to 3 Jan'22.

Vietnam's billets export offers flat: Vietnam's BF-route billets export offers stood flat at $620/t, FOB with no deals concluded last week.

SE Asian market overview :

• Indonesia: Fresh offers for HMS (90:10) are assessed at around $490/t CFR Indonesia.
  
  
• Thailand: Central America-origin HMS 1&2 (80:20) offers have remained unchanged at $410/t CFR levels. However, the sentiments are yet to pick-up.
  
  

Outlook: Vietnamese buyers are likely to remain active on limited inventories, low domestic scrap availability and active billets demand from China.